Finding a present value is the reverse of finding a future value. Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you what a cash flow will be worth in future Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return. Which of the following investments that pay will $5,000 in 12 years will have a higher price today? The security that earns an interest rate of 5.50%. The security that earns an interest rate of 8.25%. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate in exhibit the lower price? An investment that matures in ten years An investment that matures in eleven years Which of the following is true about present value calculions? Other things remaining equal, the present value of a future cash flow increases if the investment time period increases