You are presented with two cash flow options: Option Near, a $5,000 annuity for three years, with the first cash flow one year from today, or Option Far, a $5,000 annuity for six years with the first cash flow ten years from today. Assuming an interest rate of 7.0%, which set of cash flows has a greater present value?

Select one:

a. Option Far has a greater PV of $13,121.58 vs. Option Near PV of $12,963.41.

b. Option Near has a greater PV of $13,121.58 vs. Option Far PV of $12,963.41.

c. Option Far has a greater PV of $30,000 vs. Option Near PV of $15,000.

d. Option Near and Option Far have the same PV of $12,963.41.