The minimum rate of return is also known as

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The minimum rate of return is commonly known as the hurdle rate, which represents the minimum return that must be generated by a project or investment to justify its cost. It is the rate at which the present value of cash inflows equals the present value of cash outflows, and it is used to evaluate the feasibility of projects or investments. The payback period measures the time it takes to recover the initial investment, the net present value calculates the present value of expected cash inflows minus the present value of expected cash outflows, and the cost of debt represents the interest rate that a company must pay on its debt. However, only the hurdle rate is synonymous with the minimum rate of return.

The Minimum Rate of Return Is Also Known as