Once the internal rate of return on a project is known, it is compared to which of th? following?

A) The cost of capital rate.
B) The tax rate.
C) The net present value of the project.
D) The tax shield.

The internal rate of return (IRR) is a measure of the profitability of a project and indicates the rate at which the project's net present value (NPV) is zero. Therefore, the IRR is compared to the cost of capital rate to determine if the project is a worthwhile investment, as it represents the minimum rate of return that the project should generate to cover the cost of capital. The tax rate, net present value, and tax shield are also important considerations in investment decisions, but do not directly relate to the comparison of IRR to the cost of capital rate.