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.