Question: DSGs annual report includes information about its debt and interest rates. One statement in its annual report reveals that DSG has floating rate borrowings of

DSG’s annual report includes information about its debt and interest rates. One statement in its annual report reveals that DSG has floating rate borrowings of more than £200 million at 6.125%.
Required
Explain how DSG would use that 6.125% rate to evaluate its investments in capital projects.

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