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.
ACCA Forums
MAIRR
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?
10y ago#2If you wish for me to answer then you must ask in the Ask the Tutor Forum - this forum is for students to help each other :-)
Sign into reply to this topic.