What is the Hurddle Rate in Argentina?
5 Pages Posted: 30 Jun 2006 Last revised: 16 Aug 2017
Date Written: June 1, 2004
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: Suggested Citation