If the IRR of your project or business venture is lower than your cost of debt or the amount of interest rate you would pay to a bank (if you borrow money from the bank to do the investment or project), then it is not a good investment. On the other hand, if your IRR is higher than the amount you would borrow from the bank to pay for an investment or project, then it is a good investment, because of the positive "spread" in between your rate of return and cost of debt.
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