Question: You are considering two projects with the following cash flows: Project Y Project X Year 1 $9,500 $6,000 Year 2 $9,000 $6,900 Year 3 $6,900

You are considering two projects with the following cash flows:

Project Y Project X

Year 1 $9,500 $6,000

Year 2 $9,000 $6,900

Year 3 $6,900 $9,000

Year 4 $6,000 $9,500

Which one of the following statements is true concerning the two projects given a positive discount rate?

A. Both projects have the same present value at time zero.

B. Project X has a higher present value at time zero than project Y

C. Project Y has both a higher present value and a higher future value than project X.

D. Both projects have the same future value at the end of year 4.

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