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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 $1000 per year forever. An Al firm offers the second investment. It pays $800 next year but is expected to grow at 8% forever. Suppose that
the risk-free rate is 2%. but the Al firm's cost of capital is 10%. 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 8%, it will be much more than the Ireasury
D. The Treasury: It has a higher present value

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