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Hurdle rate

The Hurdle Rate is a concept in financial management that refers to the minimum rate of return that an investor should expect before deciding to invest in a project or venture. It is typically determined by the risk associated with the project or experience and is used to compare the potential returns of different investments. The Hurdle Rate is used as a benchmark to determine whether a proposed acquisition will likely meet the investor's expectations and provide a reasonable return. Generally, the higher the hurdle rate, the higher the expected return and the greater the risk associated with the project or venture.

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