Based on present value calculations, the following are true:
- A. 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.
- B. The security that earns an interest rate of 6.00%.
- B. An investment that matures in five years.
- B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.
<h3>What is true of present value calculations?</h3>
Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.
The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.
Find out more on present value at brainly.com/question/15904086.
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