The required rate of return is the minimum rate of return a project must yield to be acceptable. Any return below the cost of capital is unacceptable.
The required rate of return is the minimum rate of return a project must yield to be acceptable. Any return below the cost of capital is unacceptable. The required rate of return takes into account the time value of money, as well as the risks associated with the project. The required rate of return is used to determine whether a project is worth undertaking.
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