Finding a present value is the reverse of finding a future value. Is the process of finding 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 $11,000 in eight years will have a lower price today? Assume that both investments have equal risk. The security that earns an interest rate of 19.50% The security that earns an interest rate of 13.00% Eric wants to invest in government securities that promise to pay $1,000 at maturity The opportunity cost (interest rate) of holding the security is 11.00%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options is priced lower? An investment that matures m nine years An investment that matures in 10 years Which of the following is true about present value calculations? Other things remaining equal, the present value of a future cash flow increases if the discount rate Increases. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increase