You are considering two projects with the following cash flows:

	Project X	Project Y
Year 1	$8,500	$7,000
Year 2	8,000	7,500
Year 3	7,500	8,000
Year 4	7,000	8,500

Which one of the following statements is true concerning these two projects given a positive discount rate?

Project Y has a higher present value than Project X.

Project X has both a higher present and a higher future value than Project Y.

Both projects have the same value at Time 0.

Both projects have the same future value at the end of Year 4.

Both projects are ordinary annuities.