In corporate finance, the minimum acceptable rate of return an investment project must earn to justify its capital costs is termed the:

Explanation

• The Hurdle Rate (or required rate of return) is the minimum return target a capital investment project must exceed to be accepted by management.
• It typically reflects the company’s Weighted Average Cost of Capital (WACC) adjusted for project risk.
• A project is acceptable if its expected Internal Rate of Return (IRR) is greater than or equal to the Hurdle Rate.