Minimum acceptable rate of return

In corporate finance, business, and engineering economics - in both industrial engineering and civil engineering - the minimum acceptable rate of return (often abbreviated MARR) is the minimum rate of return on a project a manager or company is willing to accept.

A synonym seen in many contexts is minimum attractive rate of return. The term hurdle rate (or cutoff rate) is also frequently used as a synonym, particularly in corporate finance, where the benchmark is often the cost of capital. See .

MARR increases with increased risk, and given the opportunity cost of forgoing other projects. It is typically referenced in the preliminary analysis of proposed projects. Provided by Wikipedia