What is saving? What role does it play in financial markets? Investors know for sure that the CEO of firm A will undertake an investment that will yield $100 million profit next year and then $2 million each year after that for 10 years. They also know for sure that the CEO of firm B will undertake an investment that will yield nothing for two years and then a profit of $20 million per year for 10 years. Which company will have the higher stock price today, next year, the second year, and the third year?
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