Why should managers set the required rate of return higher than the rate at which money can

Question:

Why should managers set the required rate of return higher than the rate at which money can be borrowed when making a typical decision?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...