TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

CUTOFF RATE [2 records]

Record 1 2010-12-13

English

Subject field(s)
  • Investment
  • Financial and Budgetary Management
DEF

A somewhat arbitrary rate of return, related to the current cost of borrowing money, set by a government or company to guide investment decisions.

OBS

Below this limit, investment is normally considered inadvisable.

Key term(s)
  • cut-off rate

French

Domaine(s)
  • Investissements et placements
  • Gestion budgétaire et financière
DEF

Taux d'actualisation correspondant au rendement minimal que désire l'entreprise, par exemple le coût pondéré du capital, dont cette dernière se sert pour faire le tri entre les projets d'investissement acceptables pour elle et ceux qui ne sont pas assez rentables.

Spanish

Campo(s) temático(s)
  • Inversiones
  • Gestión presupuestaria y financiera
Save record 1

Record 2 1998-06-25

English

Subject field(s)
  • Economic Planning
  • Financial and Budgetary Management
DEF

The rate below which a project is considered unacceptable. Often taken to be the opportunity cost of capital. The cut-off rate would be the minimum acceptable internal rate of return for a project of the discount rate used to calculate the net present worth, the net benefit-investment ratio, or the benefit-cost ratio.

Key term(s)
  • cut-off rate of return

French

Domaine(s)
  • Planification économique
  • Gestion budgétaire et financière

Spanish

Campo(s) temático(s)
  • Planificación económica
  • Gestión presupuestaria y financiera
DEF

Es la tasa de rentabilidad por debajo de la cual se considera inaceptable un proyecto. A menudo se estima que es el costo de oportunidad del capital. La tasa de rentabilidad aceptable sería la tasa de rentabilidad interna mínima aceptable correspondiente a un proyecto, o la tasa de actualización utilizada para calcular el valor neto actual, la relación inversión-beneficio neto, o la relación beneficios-costos.

Save record 2

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