Which one 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 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