The concept of time value of money is important to financial decision making because a. It emphasizes earning a return on invested capital. b. It recognizes that earnings return makes $1 worth more today than $1 received in the future. c. It can be applied to future cash flows in order to compare different streams of income. d. All of the above are correct statements. 4. The higher the interest rate used in determining the future value of a $1 annuity, (other things constant), a. The smaller the future value at the end of a period. b. The greater the future value at the end of a period. c. The greater the present value at the beginning of a period. d. None of the above - the interest rate has no effect on the future value of an annuity