Cost of capital hurdle rate
Generally, the hurdle rate is equal to the company's costs of capital, which is a combination of the cost of equity and the cost of debt. Managers typically raise the hurdle rate for riskier The hurdle rate is a benchmark for the rate if return that is set by an investor or manager. On the other hand the weighted average cost of capital (WACC) is the cost of the capital. This includes all sources of capital. A hurdle rate may be higher or lower than a company's WACC.