You are considering two projects, A & B, with the following cash flows:
YEAR A B
1 $5,000 $4,000
2 $3,500 $4,500
3 $4,500 $3,500
4 $4,000 $5,000
Which of the following statements concerning these two projects are true?
A. Both projects have the same future value at the end of year 4, given a positive rate of return.
B. Both projects have the same future value given a zero rate of return.
C. Project A has a higher future value than project B, given a positive rate of return.
D. Both projects have the same future value at any point in time, given a positive rate of return.