You Are Presented with Two Cash Flow Options: Option Near,a

Multiple Choice

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?

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