Minimum acceptable rate of return | Glossary

Definition:

In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. A synonym seen in many contexts is minimum attractive rate of return.

Further Reading:

Book: kanban Maturity Model by Teodora Bozheva, David J. Anderson

 

Internal rate of return | Glossary

Definition:

The internal rate of return is a measure of an investment’s rate of return. The term internal refers to the fact that the internal rate excludes external factors, such as inflation, the cost of capital, or various financial risks. It is also called the discounted cash flow rate of return.

Further Reading:

Book: kanban Maturity Model by Teodora Bozheva, David J. Anderson