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If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project,
If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the
project, how will the borrowing business act?
The business will not take out the loan.
The business may or may not take out the loan, depending on random factors.
The business will take out the loan.
The business will demand more funds to cover the shortfall.
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