Question: Pick one correct statement regarding two projects with the cash flows, as indicated in the table below, given a positive discount rate. Project A Project
Pick one correct statement regarding two projects with the cash flows, as indicated in the table below, given a positive discount rate.
| Project A | Project B | |
| Year 1 | $10,000 | $6,000 |
| Year 2 | 9,000 | 8000 |
| Year 3 | 8,000 | 9000 |
| Year 4 | 6,000 | 10,000 |
Multiple Choice
| - (A) - Project A has both a higher present and a higher future value than Project B. |
- (B) - Both Projects are ordianry annuities
- (C) - Project B has a higher present value than Project A
| - (D) - Both projects have the same future value at the end of Year 4. |
- (E) - Both projects have the same value at time 0
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