A business will have difficulty attracting investors if investments in the business have internal rates of return below an investor's required rate of return.

Question

Quizplus · Accepted Answer

Investors typically have a minimum required rate of return and would only invest in a business if the expected internal rate of return is higher than their required rate. If the business cannot meet this threshold, it will have difficulty attracting investors.

A Business Will Have Difficulty Attracting Investors If Investments in the Business