Question

project is considered to be financially viable if its internal rate of return is

Answer 1

The IRR rule states that if the internal rate of return on a project or an investment is greater than the minimum required rate of return, typically the cost of capital, then the project or investment should be pursued.

Answer 2

Answer:

The internal rate of return (IRR) rule is a guideline for evaluating whether to proceed with a project or investment. The IRR rule states that if the internal rate of return on a project or an investment is greater than the minimum required rate of return, typically the cost of capital, then the project or investment should be pursued. Conversely, if the IRR on a project or investment is lower than the cost of capital, then the best course of action may be to reject it.