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2. Rate of Return Any business or firm always wants a higher return for its investment. An investment is undertaken if it is profitable. If

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2. Rate of Return Any business or firm always wants a higher return for its investment. An investment is undertaken if it is profitable. If the cost of investment is greater than the rate of return, this investment is regarded as not profitable and therefore, it will discourage investors and vice versa. A higher rate of return will boost investments

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