Required Rate Of Return

Views Updated: Dec 15, 2025

Key Facts

Abbreviation
RRR
Pronunciation
/rikˈwaɪərd reɪt əv rɪˈtərn/
Category
Miscellaneous
Related Field
Unclassified

Examples in Context

  1. To use the method, a required rate of return must be defined.
  2. Typically the required rate of return is based on projects of equivalent risk.
  3. This internal rate of return ( IRR ) for the project is then compared to a minimum required rate of return for projects of similar risk.
  4. The required rate of return is the minimum acceptable rate of return. It also is referred to as the discount rate or the cost of capital.
  5. In other words, if the NPV is positive, it means that the initial investment and the required rate of return have been recovered.

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