Which one of the following statements is correct given the following two sets of project cash flows?
Project A Project B
Year 1 6000 2000
Year 2 0 3000
Year 3 2500 3000
Year 4 2500 3000 A. The cash flows for Project B are an annuity but those of Project A are not.
B. Both sets of cash flows have equal present values as of time zero given a positive discount rate.
C. The present value at time zero of the final cash flow for Project A will be discounted using an exponent of three.
D. The present value of Project A cannot be computed because the second cash flow is equal to zero.
E. As long as the discount rate is positive Project B will always be worth less today than will Project A.