What is the Hurdle Rate in Argentina?

14 Pages Posted: 29 Jun 2006

Date Written: June 2004

Abstract

In 2002, after a financial crisis and one of the most important defaults in history, Argentina devaluated the Peso. The country risk inmediatly raised , and so did the hurdle rates for capital investment projects. In this context, any investment seem to be unacceptable. The discussion in this paper is if there was a Hurdle Rate or not, and we resent an estimation for different Industries in June 2004.

Keywords: discount, rate, wacc, capital, investment, decisions, hurdlle, project, cash flow, inversion, tasa, descuento, flujo, fondos, evaluacion, proyectos, finanzas corporativas, corporate finance

JEL Classification: E43,E44,G12,G31,G32

Suggested Citation

Merlo, Mariano German, What is the Hurdle Rate in Argentina? (June 2004). Available at SSRN: https://ssrn.com/abstract=911621 or http://dx.doi.org/10.2139/ssrn.911621

Mariano German Merlo (Contact Author)

University of Belgrano (U of B) ( email )

Zavala 1837
CABA, AR Buenos Aires C1426DQG
Argentina
5411 47885400 (Phone)

HOME PAGE: http://www.ub.edu.ar

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