Investment options

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 WORK7. You are comparing two investment options. The cost to invest in either option is the sametoday.Both options will provide you with $20,000 of income. Option A pays five annual payments…