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Sir,
In Kaplan book, there is a line said “Projects should be accepted if IRR is greater than the cost of capital “.Could you please tell me what does it mean.I understand the IRR as the discount rate that, if applied to the cash flows if a project, would produce a net present value of zero. If the IRR was less than the cost of capital, then it wouldn’t be worth pursuing with the project.
Do you know what cost of capital is?
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