The minimum return you require from your investment. Below this threshold, it's better to put money in another alternative (bank, savings, etc.).
↳ Analogía
It's like the minimum interest a bank would require. If your business doesn't beat that, better leave the money in savings.
Ejemplo numérico
High MARR = stricter, you reject more, but the ones that pass are solid. Low MARR = you accept more risk. For LATAM SMEs: 18–25% is reasonable.
Opportunity cost (USD term deposit): 10%. Industry risk premium: 12%. → MARR = 22%. Your project must earn more than 22% to justify the risk.