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.
- Go to the Capex section.
- Click in the first “Asset” box next to the purchase price on “Calculate”.
- Enter the desired hurdle rate and click on “Calculate”. The Purchase Price changes accordingly.
- Click “Save” to add the Purchase Price to the project.