A value of discount rate which nullifies the project's NPV :

$\begin{array}{l}\displaystyle \mbox{NPV} = \sum_{i=0}^n \frac{R_i}{(1+\mbox{IRR})^i} = 0\end{array}$

The usual practise is to give preferences to the investment projects with higher IRR and make a direct comparison of IRR against the Weighted Average Cost of Capital (WACC).

The corporate investment policy usually dictates that:

investment projects with IRR < WACC should be rejected

investment projects with higher IRR should have a financing priority over the projects with lower IRR

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See also