[pdm55]

IIRC Warren Buffett doesn't allow the independently-run businesses that are part of his conglomerate to borrow from the banks. If they want to borrow money, he will lend it to them at 15%. So I guess that is a yardstick to judge oneself against. Could I repay a loan where the interest rate is 15%?

[Seanambers]

It's a great way to prevent money from being wasted on projects that have a low return on investment(IRR-internal rate of return). In other words only the projects that generate a sufficiently large return are feasible investments. Buffet does not like to waste resources,time and money :)