Minimum Acceptable Rate of Return (MARR)
Learned in ECE192.
MARR is the minimum return, expressed as an interest rate, that a company is willing to obtain on an investment:
- Projects earning at least the MARR are considered attractive because the money invested is earning as much as can be earned elsewhere.
The MARR can also be viewed as the rate of return required to get investors to invest in a business (cost of capital).