What is another term for the required rate of return when using the net present value model?

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The required rate of return when using the net present value model is commonly referred to as the discount rate. This is the rate used to discount future cash flows in order to determine their present value. It represents the opportunity cost of investing in a project - in other words, the rate of return that investors could earn by investing in a similar opportunity with the same level of risk. The other options, such as the "hurdle rate" and "maximum acceptable rate of return," may be used in financial analysis but are not specifically associated with the net present value model. The payback rate, meanwhile, is focused on the length of time it takes to recoup an initial investment, rather than the rate of return.

What Is Another Term for the Required Rate of Return