Final answer:
The statement is false because the present value is actually inversely related to both the discount rate used for valuation and the potential high returns associated with riskier investments.
Step-by-step explanation:
The statement 'the greater the potential return on an investment and the longer the period of time, the higher the present value' is false. The present value of an investment is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
For example, if you have a series of payments to be received over 30 years, the present value of those payments will depend on the discount rate applied. High-risk investments usually offer the potential for higher returns to attract investors, but this does not mean that the current value of these investments is higher just because the potential future returns are high.