Attempts: Keep the Highest:/4 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 3. Present value Finding a present value is the reverse of finding a future value. is 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 $17,000 in 12 years will have a higher price today? The security that earns an interest rate of 12.75%. The security that earns an interest rate of 8.50%. wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest Ene's investment time Eric rate) of holding the security is 12.40%. Assuming that both investments have equal risk and horizon is flexible, which of the following investment options will exhibit the lower pr O An investment that matures in 10 years O An investment that matures in nine years Which of the following is true about present value calculations? O Other things remaining equal, the present value of a future cash flow 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 period Book P esc G Search or type URL 2 4