Short-Term versus Long-Term Cash Flows Conceptual Overview: Explore how time and the cost of capital affects the net present values of two alternative investments The equations below show the discounted or present value of cash flows either one year or three shows the di value for an interest rate that is controlled by the slider. The third equation compares the two discounted values the discounted value of the one-year cash flow changes more or less quickly than the discounted value of the twenty-year cash flow twenty years in the future. The first equation in each set of value when the interest rate (or cost of capital) equals 5%. The second equation in each set of three shows the discounted . Change the slider and observe whether Year 1 Cash Flow PV of $100 due in l year @ r-5.0% : MI-$95.24 PV of $100 due in l year @ r-5.0% : Moo-S95.24 Percentage change due to different r-ses in 524-00% , $95.24: -0.0% Year 20 Cash Flow PV of S 100 due in 20 years @ r-50% : sl PV orsi 00 due in 20 years @ r-5.0% : ,00.-S37.69 Percentage change due to different537 697 10520 -. $37.69 $37.69-$37.69-0.0% d. Does not change 2. what is the percentage change in the PV of S100 due in 20 years when the interest rate (cost of capital) changes from S% to 10967 c. Does not change d. Increases by 22.83% s by 60.6% 3. The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are: b, the same because the cash flow is the same less and sometmes more depending on the interest rate. Select