The decision rule for the internal rate of return method of investment decision-making is that projects will be accepted for rates that are

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The decision rule for the internal rate of return method of investment decision-making is that projects will be accepted for rates that are above the entity's required rate of return. This means that the investment must generate a rate of return greater than the cost of capital used to finance it. Therefore, projects with internal rates of return (IRR) lower than the required rate of return should be rejected, and those with IRR higher than the required rate of return should be accepted.

The Decision Rule for the Internal Rate of Return Method