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hurdle rate

The hurdle rate is the internal rate of return established in an organization as necessary to justify investment in an operation, based usually on the short-term cost of borrowing.

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hurdle rate

The hurdle rate is the internal rate of return established in an organization as necessary to justify investment in an operation, based usually on the short-term cost of borrowing.

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It is often used as the discount rate in a net present value cost analysis.