3.4.1 Hurdle Rate Search

How to find the asset purchase price which leads to your hurdle rate

With the hurdle rate solver you can calculate the asset purchase price which leads to the specified hurdle rate (based on all the assumptions made in the project). Example: An investor wants to reach an equity hurdle rate of 8.5%, and uses the hurdle rate solver to calculate the asset purchase price.

  1. Go to the Capex section
  2. Click on "Calculate" next to the "Purchase Price".
  3. Input the equity hurdle rate you want to reach in the popup window and click on "Calculate".

  4. The result will be inserted in the field "Purchase Price"
  5. Click "Save" to update the purchase price in the project.