Required Rate of Return

The Net Present Value Method evaluates potential investments using the company’s required rate of return, the minimum potential profit the company requires before it makes an investment.

The required rate of return is the interest rate used to calculate the net present value of projected yearly inflows when using the Net Present Value method of capital investment analysis.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/required-rate-of-return/