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A company is considering an investment opportunity. Investment A will pay $100,000 today and $300,000 in 2 years. Investment B will pay $100,000 today, $200,000

A company is considering an investment opportunity. Investment A will pay $100,000 today and $300,000 in 2 years. Investment B will pay $100,000 today, $200,000 in 1 year and $100,000 in two years. Which one should the company choose?

A

B

Either one, they are worth the same.

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