In order to determine if a project is acceptable, it's important to compare the internal rate of return to the company's cost of capital.
It should be noted that the rate of return is determined by assessing the risk involved, cost of capital, etc.
Therefore, to determine if a project is acceptable, one has to compare the internal rate of return to the company's cost of capital. If the IRR is greater than the cost of capital, then the project should be accepted.
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