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A company uses the btwacc method to assess investment

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.

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Accounting Basics: A company uses the btwacc method to assess investment

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