The 5% needs to be weighed against the cost of capital, not just the absolute return from the company's perspective. A 5% return sounds fine but if the market is now pricing equities for a 7% return then a company is lighting money on fire by making that 5% investment (because they can return the cash to shareholders who can invest in other businesses at 7%).
Let's say it was hypothetically like this.
Microsoft
2019
Cost of capital: 0.25% (should be irrelevant because they had billions in cash on hand but let's assume they refuse to use it for whatever reason and instead went to banks to get loans to pay for employees working on projects)
They work on a project, it returns 20% gross. 20% - cost of capital = ROI of 19.75%
2022
Cost of capital: 4.50%
Project returns 20% gross still, but now the net ROI is 15.5%
Why would you lay off employees who could bring you 15.5% (average project profitability assumption?) in favor of instead parking your cash for the risk free rate of 4.5%?
2019 Cost of capital: 7%, gross return 10% for 3% excess return
2022 Cost of capital: 12%, gross return 10% for -2% excess return
In which case that project would get cut and layoffs would occur.