If a project's IRR is greater than the cost of capital, the project should be rejected.

Name: If a project's IRR is greater than the cost of capital, the project should be rejected.
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Quizplus · Accepted Answer

If a project's IRR is greater than the cost of capital, it means that the project is expected to generate a return higher than the cost of financing it. This is a positive sign and indicates that the project is financially attractive. Therefore, the project should be accepted and not rejected.

If a Project's IRR Is Greater Than the Cost of Capital