• explain your answer to the following question

14. Explain your answer to the following question: You can receive one of the following two sets of cash flows. Under Option A, you will receive 10 annual payments of $1,000, with the first payment to occur 4 years from now. Under Option B, you will receive X at the end of each year, forever, with the first payment to occur 1 year from now. The annual effective rate of interest is 8%. Which of the following equations should be solved to find the value of X such that you are indifferent between these two options? (A) 80am 4 =X (B) 80a ) =X (C) 80av) = X (D) 80a (0.08) = X (E) 80av = X