When considering a project, which of the following criteria is typically used to evaluate its financial feasibility?

The internal rate of return (IRR) is a widely used criterion for evaluating the financial feasibility of a project. It represents the discount rate at which the net present value (NPV) of the project's cash flows equals zero. Essentially, IRR is the rate of growth a project is expected to generate, which allows decision-makers to assess whether it meets the required return thresholds for investment.

In financial analysis, projects with an IRR above the cost of capital are typically considered attractive because they are expected to yield a profit exceeding the cost of financing. Investors often use this metric as it provides a clear indication of the potential profitability and efficiency of the investment over time. Additionally, comparing the IRR to other investment opportunities helps in making informed decisions about where to allocate resources.

While social return on investment, market trends, and stakeholder engagement factors contribute to the overall evaluation of a project's success, they do not specifically measure the financial viability as directly as IRR does. Social return takes into account non-financial impacts, market trends focus on external conditions that may influence success, and stakeholder engagement pertains more to the project's acceptance and support rather than its financial metrics. Therefore, IRR stands out as the essential criterion for assessing the financial feasibility of a project.