Final answer:
To increase the present value of a future amount, the interest rate used in the discounting calculation must be lowered.
Step-by-step explanation:
To increase the present value of an amount to be received in the future, one would need to lower the interest rate used in the calculation. As the information provided indicates, when the interest rate increases from 8% to 11%, the present value of future payments decreases. This relationship is due to the nature of discounting, which is the process of determining the present value of a future amount. The present value is inversely related to the interest rate; thus, using a lower discount rate would increase the present value of future cash flows. Additionally, present value can be increased by receiving the payments earlier or by expecting future payments to increase, but since the actual dollar payments are not changing, focusing on the discount rate is key.