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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