Investment Options a and B Are Equally Risky and Have

Investment options A and B are equally risky and have identical initial costs.Each investment will produce cash inflows of $20,000.Option A will pay $8,000 the first year followed by four annual payments of $3,000 each.Option B will pay five annual payments,starting in 1 year,of $4,000 each.Which one of the following statements is correct given these two investment options? Assume a positive rate of return.

A) Neither investment should be undertaken.
B) Option A is the better investment.
C) Option B has a higher net present value.
D) Option B has a lower future value at Year 5.
E) Both options are of equal value.