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if a company invests in a project with an internal rate of return higher than the company's cost of capital, the project should:
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if a company invests in a project with an internal rate of return higher than the company's cost of capital, the project should:

User Ruben Verborgh
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19 votes

In theory, any project with an IRR greater than its cost of capital should be profitable. In planning investment projects, firms will often establish a required rate of return (RRR) to determine the minimum acceptable return percentage that the investment in question must earn to be worthwhile. The RRR will be higher than the WACC.

Thus, your answer ↑ is Profitable.

User Thaddee Tyl
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