Question: How do capital investments affect profitability, also explain how a company establishes its minimum acceptable rate of return on investments. Two investment opportunities have positive

How do capital investments affect profitability, also explain how a company establishes its minimum acceptable rate of return on investments. Two investment opportunities have positive net present values. Investment A's net present value amounts to $40,000, while B's is only $30,000. Does this mean that A is the better investment opportunity? Explain.

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