Accounting Rate of Return
Accounting-profit return measure used as a simple capital-budgeting screen, but weaker than discounted cash-flow metrics for major investments.
Accounting rate of return, hurdle rate, MIRR, and IRR comparison terms.
Project Return and Hurdle Rate Tools covers capital budgeting, project appraisal, investment inputs, budgets, payback tools, return metrics, and funding constraints used to allocate corporate capital.
Use these pages when a project, expansion, budget, or long-term investment decision changes cash flows, risk, hurdle rates, capital requirements, or value creation. It sits inside Project Evaluation, Return, and Payback Tools, so readers can move up when the broader company-finance context matters.
Use the table below to choose the narrower corporate-finance branch before applying a term to a model, board memo, financing analysis, transaction review, or risk assessment. Move into the term page when the evidence source, calculation, agreement, filing, account, or governance right matters.
| Area | Use it for |
|---|---|
| Accounting Rate of Return | Accounting-profit return measure used as a simple capital-budgeting screen, but weaker than discounted cash-flow metrics for major investments. |
| Hurdle Rate | Minimum acceptable project return used in capital budgeting to decide whether expected returns compensate for risk and opportunity cost. |
| IRR vs. MIRR | Comparison of traditional IRR and MIRR, used to decide when project-return analysis needs explicit financing and reinvestment assumptions. |
| Modified Internal Rate of Return (MIRR) | Project-return metric that separates financing and reinvestment assumptions to reduce IRR’s reinvestment and multiple-rate problems. |
Capital-budgeting content is educational and does not recommend a project, acquisition, security, or financing decision.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Accounting-profit return measure used as a simple capital-budgeting screen, but weaker than discounted cash-flow metrics for major investments.
Minimum acceptable project return used in capital budgeting to decide whether expected returns compensate for risk and opportunity cost.
Comparison of traditional IRR and MIRR, used to decide when project-return analysis needs explicit financing and reinvestment assumptions.
Project-return metric that separates financing and reinvestment assumptions to reduce IRR's reinvestment and multiple-rate problems.