Business & Finance Assignment | Custom Assignment Help
. You are comparing two investment options. The cost to invest in either option is the same today.Both options will provide you with $20,000 of income.
Option A pays five annual payments startingwith $8,000 the first year followed by four annual payments of $3,000 each. Option B pays fiveannual payments of $4,000 each. Which one of the following statements is correct given these twoinvestment options?A. Both options are of equal value given that they both provide $20,000 of income.B. Option A is the better choice of the two 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. Option A is preferable because it is an annuity due.MUST SHOW ALL WORK