If the internal rate of return is greater than the cost of capital, the project should be:

1. The internal rate of return is compared against what the money costs. 2. If the IRR is greater than the cost of capital, a project should be accepted. 3. The return earned beats the return demanded by the investors. 4. So the decision is to accept. _Source: OpenStax Principles of Finance (CC BY 4.0), Ch 16 'How Companies Think about Investing', sections 16.1-16.5_