A value of possible discount rate which nullifies the project's NPV:
| \mbox{NPV} = \sum_{i=0}^n \frac{R_i}{(1+\mbox{IRR})^i} = 0 |
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
See also
Economics / Investment / Financial Investment / Financial Investment Project
[ Weighted Average Cost of Capital (WACC) ] [ Cash Discount ] [ Net Present Value (NPV) ]