The hurdle rate refers to the number of years it will take the firm to recover the original cash investment from a project's earnings.

Name: The hurdle rate refers to the number of years it will take the firm to recover the original cash investment from a project's earnings.
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The hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. It does not refer to the number of years to recover the investment.

The Hurdle Rate Refers to the Number of Years It