7. You are comparing two projects that each has 6% discount rate, compounded annually. Project A pays $2,000 the first year followed by two annual payments of $5,000 each. Project B pays three annual payments of $4,000 each. Without calculation, which one of the following statements is correct given these two investment projects?

A) Both projects are of equal value since they both provide $12,000 of income. B) Project A has the higher future value at the end of Year 3. C) Project B has a higher present value at Time 0. D) Project Bs cash flow is a perpetuity.

E) Project As cash flow is an annuity.

I believe the answer is C but I am getting confused for the Time 0