What Does Hurdle Rate Mean?

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What does Hurdle Rate mean? Read on to discover the definition & meaning of the term Hurdle Rate - to help you better understand the language used in insurance policies.

Hurdle Rate

Hurdle Rate

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. Often used as the discount rate in a net present value cost analysis.

We hope the you have a better understanding of the meaning of Hurdle Rate.

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