Question 7 You are comparing two investment options. The cost to invest in either option is the same today. Both options will provide $20,000 of income. Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each. Option B pays five annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? A. Option B is preferable because it is a perpetuity. B. Option A is the better choice given any positive rate of return C. Option B has a higher present value than option A given a positive rate of return. D. Option B has a lower future value at Year 5 than option A given a zero rate of return. E. Both options are of equal present value given that they both provide $20,000 of income