Assume you are comparing two investments, each of which will result in $$20,000$ of total cash inflow. Investment A pays $$8,000$ in Year $1,$ followed by

tour annual payments of $$3,000$ each. Investment $8$ pays five annual payments of $$4,000$ each. Which one of the following statements regarding the

investments is correct?

Mitipie Choice

Option A is preferable because it is an annuity due.

Bcth options are of equal value today.

Given a positive rate of return, Option A has a higher present value than Option B$.$

Given a zero rate of return, Option B has a lower present value than Option A$.$