Minimum Acceptable Rate Of Return

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Definition: Minimum Acceptable Rate Of Return


Minimum Acceptable Rate Of Return


Full Definition of Minimum Acceptable Rate Of Return


Indicates the minimum rate of return that a project manager considers acceptable before initiating a project. Managers apply this concept across a wide variety of projects to determine if the benefits or risks of one project exceed another possible project. A project manager is more likely to start a new project if the MARR exceeds the current level of other projects. Some managers accomplish this by applying the discounted cash flow method to the project.


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Definition Sources


Definitions for Minimum Acceptable Rate Of Return are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.