required rate of return


required rate of return
The rate of return, usually expressed as a percentage, that an organization determines is necessary before an investment can be regarded as profitable and therefore justified. In a discounted cash flow appraisal the required rate of return may be expressed as an internal rate of return and in other circumstances the return on capital employed or accounting rate of return may be regarded as appropriate. In general, it is better to estimate a range rather than a precise figure.

Accounting dictionary. 2014.

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  • required rate of return — ( RRR) The minimum expected yield by investors require in order to select a particular investment. Bloomberg Financial Dictionary …   Financial and business terms

  • Required Rate Of Return - RRR — The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project. The required rate of return (RRR) is used in both equity valuation and in corporate finance.… …   Investment dictionary

  • Market Required Rate of Return Schedule — See: Market RRR Schedule; RRR …   Financial and business terms

  • Требуемая норма прибыли (REQUIRED RATE OF RETURN)  — Минимально приемлемая норма прибыли на инвестированный капитал. Называется также минимально допустимой рентабельностью …   Словарь терминов по управленческому учету

  • rate of return — The annual income earned from the investment of resources in a commercial or economic activity, usually expressed as a percentage of the original investment. In a discounted cash flow appraisal, for example, the rate of return may be expressed as …   Accounting dictionary

  • rate of return pricing — Setting the prices of a range of products so that they earn a predetermined required rate of return or return on capital employed …   Accounting dictionary

  • Rate-of-return regulation — is a system for setting the prices charged by regulated monopolies. The central idea is that monopoly firms should be required to charge the price that would prevail in a competitive market, which is equal to efficient costs of production plus a… …   Wikipedia

  • Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… …   Wikipedia

  • rate of return — The annual amount of income from an investment, expressed as a percentage of the original investment. This rate is very important in assessing the relative merits of different investments. It is therefore important to note whether a quoted rate… …   Big dictionary of business and management

  • Gross Rate Of Return — The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter or year. It is often quoted as the rate of return on an investment …   Investment dictionary