The higher the interest rate the smaller the present value
where r = interest rate; n = number of periods until Cumulative present value of $1 per annum, Receivable or Payable at the end of each year for n years. for a given interest rate:-the longer the time period, the lower the present value-the shorter the time period, the higher the present value for a given time period:-the higher the interest rate, the smaller the present value-the lower the interest rate, the larger the present value +CF is cash inflow, -CF is cash outflow