If a project's internal rate of return is greater less)than the required rate of return, the project is generally acceptable unacceptable).

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If a project's internal rate of return is greater than the required rate of return (also known as the hurdle rate or minimum acceptable rate of return), it means that the project is generating a return that is higher than the cost of capital or the opportunity cost of the funds used. This indicates that the project is profitable and should be accepted. On the other hand, if the project's internal rate of return is less than the required rate of return, it means that the project is not generating enough return to compensate for the risk and time value of money, and should be rejected.

If a Project's Internal Rate of Return Is Greater Less)than