Certainty Equivalent
The return that would be accepted for the chance at a higher, but uncertain, amount.
Investopedia Commentary
This is useful in determining what return investors will require from your company. In other words, at what return would an investor in a certain (risk-free) investment be enticed to invest in your higher paying, yet more risky, investment.
See also: Risk Free Rate, Risk Return Tradeoff
certainty equivalent