1 A. B. C. You have the following investment. You deposited You deposited You deposited If the present value, today is What was the rate of return on this investment? John invested the following cash flows. Year Cash Flows Compound Rate What is John's accumulated value as of the end of year 3? Which of the following statements is the most accurate? a b C d $4,000.00 $6,000.00 $7,000.00 $13,108.49 0 2 3 4 $2,000 8.75% years from today. years from today. years from today. $4,000 8.75% 3 $6,000 8.75% $8,000 8.75% Present value is defined as the expected future cash flows discounted back to today at the prevailing interest rate. Present value is defined as the expected future cash flows compounded back to today at the prevailing interest rate. Present value is defined as the expected future cash flows compounded forward at the prevailing interest rate. Present value is defined as the expected accounting profits discountd back to today at the prevailing interest rate