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 $18,000 in 15 years will have a lower price today? Assume that both investments have equal risk. The security that earns an interest rate of 7.00%. The security that earns an interest rate of 10.50%. 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 8.20%. 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 in 8 years An investment that matures in 7 years Which of the following is true about present value calculations? Other things remaining equal, the present value of a cash flow in the future decreases if the investment time period increases. o Other things remaining equal, the present value of a cash flow in the future increases if the investment time period increases