Which of the following statements is correct given the following two sets of project cash flows?
Project A Project B
Year 1 $6,000 $2,000
Year 2 $0 $3,000
Year 3 $2,500 $3,000
Year 4 $2,500 $3,000
A. The cash flow from project B are an annuity, but those of project A are not.
B. Both sets of the Cash Flows have equal present values as of the time zero given a positive discount rate.
C. The present values of Project A cannot be computed because the second cash flow is equal to zero.
D. As long as the discount rate is positive, Project B will always be worth less today than will Project A.