Capital charge rate
. The capital charge is the cost of capital times the amount of invested capital. This capital charge is a dollar amount. By capital charge rate is just the cost of capital. In other words, the capital charge rate is the rate or return required on invested capital.
Nearby TermsCapital budgeting Capital Builder Account (CBA) Capital charge rate Capital commitments Capital expenditures
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University