What is the Hurddle Rate in Argentina?

5 Pages Posted: 30 Jun 2006 Last revised: 16 Aug 2017

Date Written: June 1, 2004

Abstract

In 2002, after a financial crisis and one of the most important defaults in history, Argentina devaluated the Peso. The country risk immediately 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 present an estimation for different Industries in June 2004.

Keywords: discount, rate, wacc, capital, investment, decisions, hurdle, project, cash flow, inversion, risk premium, country risk, riesgo, emerging markets

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

Suggested Citation

Merlo, Mariano German, What is the Hurddle Rate in Argentina? (June 1, 2004). Available at SSRN: https://ssrn.com/abstract=913073 or http://dx.doi.org/10.2139/ssrn.913073

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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