Question

A business will want to borrow to undertake an investment project when the rate of return on that project is:

Answer 1

B) higher than the interest rate.

Step-by-step explanation:

In the case when the business wants to borrow for a project so the rate of return would be greater than the rate of interest

And in the case when the rate of interest is lesser than the expected return so the investment would look attractive due to this there is a rise in the borrowing for that investment

Hence, the option b is correct