Assess students' ability to analyze how changes in market interest rates influence corporate capital budgeting and investment project valuation. Scope includes: how rate shifts affect discount rates and WACC, adjustments to hurdle rates, impacts on NPV and IRR, nominal vs. real rate and inflation considerations, duration and cash‑flow timing effects, and the use of sensitivity, scenario and break‑even analyses. Students should perform recalculation exercises (e.g., NPV/WACC under alternative rate scenarios), interpret results for project selection and financing choices, and justify recommendations given changing rate environments and refinancing risk.