Internal Rate of Return (IRR) for Project Acceptance: Understanding the Threshold

A conventional project should be accepted if the internal rate of return (IRR) is 'greater than' the discount rate.

The IRR represents the rate of return that makes the net present value (NPV) of a project equal to zero. If the IRR exceeds the discount rate, it indicates that the project is generating a return higher than the required rate, making it a profitable investment.