cut-off rate; hurdle rate

简明释义

最低预期资本回收率［资本预算过程中的］

英英释义

例句

1.The hurdle rate 障碍率 for this venture capital firm is set at 15%.

这家风险投资公司的障碍率设定为15%。

2.The investment project was rejected because its return was below the cut-off rate 截止率 set by the board.

这个投资项目被拒绝，因为它的回报低于董事会设定的截止率。

3.In evaluating new projects, we always compare their expected returns to the hurdle rate 障碍率.

在评估新项目时，我们总是将其预期回报与障碍率进行比较。

4.To attract investors, the startup promised returns that would surpass the cut-off rate 截止率 of 10%.

为了吸引投资者，这家初创公司承诺的回报将超过10%的截止率。

5.If the internal rate of return exceeds the cut-off rate 截止率, the project is considered viable.

如果内部收益率超过截止率，该项目被认为是可行的。

作文

In the world of finance and investment, understanding key concepts is crucial for making informed decisions. One such concept is the cut-off rate, also known as the hurdle rate. These terms refer to the minimum rate of return that an investor expects to earn on an investment project before they consider it worthwhile. Essentially, it serves as a benchmark against which the potential profitability of an investment is measured.The cut-off rate is particularly important in capital budgeting. When companies evaluate various projects, they often use this rate to determine which projects are worth pursuing. If the expected return on a project exceeds the hurdle rate, it is likely to be approved; if it falls short, the project may be rejected. This decision-making process helps ensure that resources are allocated efficiently, maximizing potential returns while minimizing risks.Investors typically set their cut-off rate based on several factors, including the risk associated with the investment, the cost of capital, and the returns available from alternative investments. For instance, a high-risk project might have a higher hurdle rate, reflecting the greater uncertainty involved. Conversely, a low-risk project could have a lower cut-off rate, making it easier to meet the expected returns.Moreover, the hurdle rate can vary across different industries and economic conditions. In a booming economy, investors might lower their cut-off rates as they anticipate higher returns, while during economic downturns, they may raise the hurdle rate to account for increased risks and lower expected returns.Understanding the implications of the cut-off rate and hurdle rate is essential for both individual investors and corporate managers. For instance, a manager who fails to accurately assess these rates may invest in projects that do not generate sufficient returns, ultimately harming the company’s financial health. On the other hand, by carefully evaluating potential investments against the hurdle rate, managers can make strategic decisions that enhance shareholder value.In conclusion, the concepts of cut-off rate and hurdle rate play a vital role in investment decision-making. They provide a framework for evaluating the potential profitability of projects and help ensure that investors and companies allocate their resources effectively. By understanding and applying these concepts, individuals and organizations can navigate the complex landscape of investments more successfully, ultimately leading to better financial outcomes.

在金融和投资的世界中，理解关键概念对于做出明智的决策至关重要。其中一个这样的概念是cut-off rate，也称为hurdle rate。这些术语指的是投资者期望在投资项目上获得的最低回报率，只有在他们认为值得时才会考虑该投资。基本上，它作为一个基准，用来衡量投资的潜在盈利能力。cut-off rate在资本预算中尤为重要。当公司评估各种项目时，他们通常使用这一比率来确定哪些项目值得追求。如果项目的预期回报超过hurdle rate，则很可能会获得批准；如果低于，则项目可能会被拒绝。这一决策过程有助于确保资源的有效分配，最大化潜在回报，同时最小化风险。投资者通常根据多个因素设定他们的cut-off rate，包括与投资相关的风险、资本成本以及来自替代投资的回报。例如，高风险项目可能具有更高的hurdle rate，反映出涉及的更大不确定性。相反，低风险项目可能具有较低的cut-off rate，使其更容易达到预期回报。此外，hurdle rate在不同的行业和经济条件下可能有所不同。在繁荣的经济中，投资者可能会降低他们的cut-off rates，因为他们预计更高的回报，而在经济衰退期间，他们可能会提高hurdle rate以考虑增加的风险和较低的预期回报。理解cut-off rate和hurdle rate的影响对于个人投资者和企业管理者来说至关重要。例如，如果管理者未能准确评估这些比率，可能会投资于无法产生足够回报的项目，最终损害公司的财务健康。另一方面，通过仔细评估潜在投资与hurdle rate的关系，管理者可以做出增强股东价值的战略决策。总之，cut-off rate和hurdle rate的概念在投资决策中发挥着至关重要的作用。它们提供了评估项目潜在盈利能力的框架，并帮助确保投资者和公司有效分配资源。通过理解和应用这些概念，个人和组织可以更成功地驾驭复杂的投资环境，最终实现更好的财务结果。