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 de the silowing investments that pay vill 519,000 in 14 years will have a higher price today? The security that earns an interest rate of 10:50 The security that earns an interest rate of 7.0056, Eric wants to invest in government securities that promise to pay $1.000 at maturity. The opportunity cost interest rate) of holding the secunty is 9.60%. Assuming that both investments have equal risk and Bric's investment time horizon is fedible, which of the following investment options will exhibit the lower price? An investment that matures in five 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 flow increases if the investment time period increases. Other things remaining equal, the present value of a future cash flow decreases if the investment time period increases