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2) An investor is looking to invest in two companies. Company A has expected future earnings of $10 per share in year 1, $7 in

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2) An investor is looking to invest in two companies. Company A has expected future earnings of $10 per share in year 1, $7 in year 2 and $3 from year 3-5. Company B has expected future earnings of $4 in year 1, $5 in year 2 and $6 from year 3-5. Assuming the companies both have similar risk profiles, discuss which is the better investment for them to make

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