The required rate of return used in the net present value model can also be called the

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All of these terms are commonly used to refer to the required rate of return used in the net present value model. The hurdle rate represents the minimum rate of return that an investment must achieve in order to be accepted. The minimum acceptable rate of return is the same as the hurdle rate. The cost of capital represents the cost of obtaining funds for an investment, which includes both debt and equity financing. The discount rate is the rate used to discount future cash flows to their present value in the net present value calculation. Therefore, all of these terms are interchangeable when referring to the required rate of return used in the net present value model.

The Required Rate of Return Used in the Net Present