An element of the IRR concept is the rate designated as the minimum acceptable rate for a project to be accepted

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The IRR concept involves determining the rate at which the net present value of a project's cash flows is zero. This rate is known as the internal rate of return (IRR). The minimum acceptable rate for a project to be accepted is often referred to as the hurdle rate or cutoff rate. If the IRR of a project is greater than or equal to the hurdle rate, the project is considered acceptable.

An Element of the IRR Concept Is the Rate Designated