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Investment X and Investment Y are both growing perpetuities with initial cash flow of $100. Both investments have the same interest rate (r) and cash
Investment X and Investment Y are both growing perpetuities with initial cash flow of $100. Both investments have the same interest rate (r) and cash flows. The present value of Investment X is $5,000, while the present value of Investment Y is $4,000. Which of the following is true? O A. Investment X has a higher growth rate than Investment Y. B. Investment X has a lower growth rate than Investment Y. C. The answer cannot be determined without knowing the interest rate for both investments. D. With the same initial cash flow and the same interest rate, Investment X and Investment Y should have the same present value
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