The minimum acceptable rate of return (MARR)is
A)an interest rate, which is equal to a current bank interest rate.
B)the least interest rate among all alternative projects.
C)a highest interest rate among all alternative projects.
D)an interest rate that allows an investor to recoup the investment.
E)an interest rate that must be earned for a project to be accepted.

Question

Quizplus · Accepted Answer

The minimum acceptable rate of return (MARR) is essentially the lowest return rate that an investor is willing to accept for an investment or project. It is used as a benchmark to decide whether to proceed with the project. It is not necessarily tied to current bank rates, nor is it the least or highest rate among alternatives. It is specifically the threshold rate that makes an investment worthwhile.

The Minimum Acceptable Rate of Return (MARR)is