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You are considering two investments. The US Treasury offers the first investment: it pays $ 1 0 0 0 per year forever. An Al firm
You are considering two investments. The US Treasury offers the first investment: it pays $ per year forever. An Al firm offers the second investment. It pays $ next year but is expected to grow at forever. Suppose that
the riskfree rate is but the Al firm's cost of capital is Which investment do you select?
O A The Al Firm: We must submit to our robotic overlords
B It does not matter: both have infinite value because they pay forever
C The Al Firm: Because it grows at it will be much more than the Ireasury
D The Treasury: It has a higher present value
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