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Assess investment projects using btwacc method

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Reference no: EM131713188

Question: A company uses the BTWACC method to assess investment projects. Its management has set the value of the discount rate. Analysts are currently studying a project that would be partly financed by a loan whose interest rate is still unknown. They carry out a sensitivity analysis and find that the higher the interest rate, the greater is the project's IRR. Discuss whether this finding is surprising.

Reference no: EM131713188

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