What is required rate of return?

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The required rate of return (RRR) is the minimum annual percentage earned by an
investment that will induce individuals or companies to put money into a particular
security or project. The RRR is used in both equity valuation and in corporate finance.
Investors use the RRR to decide where to put their money, and
corporations use the RRR to decide if they should pursue a new project or business
expansion.