3. Present value Finding a present value is the reverse of finding a future value. Discountingis the process of calculating the present value of a cash flow or a series of cash flows to be received in the future Which of the following investments that pay will $9,500 in 14 years will have a lower price today? 0 The security that earns an interest rate of 825%. The security that earns an interest rate of 550%. Eric wants to invest in government securities that promise to pay S1,000a maturity. The opportunity cost (interest rate) of have equsal risk and Eric's investment time horizon is lexible, which of the following investmert options will exhibit the lower price? An investment that matures in seven years An investment that matures in six years Which of the following is true about present value calculations? Other things remaining equal, the present value of a future cash ow decreases if the investment time period increases O Other things remaining equal, the present value of a future cash flow increases if the investment time pemd increases