A capital budgeting project is acceptable if the firm's rate of return required is greater than the project's internal rate of return (IRR).

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A capital budgeting project is acceptable if the firm's rate of return required is less than the project's internal rate of return (IRR). This is because IRR represents the expected rate of return on the project and if it is higher than the firm's required rate of return, then the project is considered to be profitable and acceptable.

A Capital Budgeting Project Is Acceptable If the Firm's Rate