The present value of the $6,000 receivable in 4 years and the $40,000 receivable in 14 years, discounted at a rate of 13%, is $12,904.04.
The subject of this question is Business, specifically within the finance area. The grade level would be considered College, as present value calculations are typically covered in college-level finance courses. To calculate the present value of the cashflows, we must discount each future cashflow back to its present value using the formula:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods.
For the $6,000 due at the end of the 4th year, the present value is calculated as:
$6,000 / (1 + 0.13)^4 = $3,388.16.
For the $40,000 due at the end of the 14th year, the present value is:
$40,000 / (1 + 0.13)^14 = $9,515.88.
Adding both present values together gives the total present value of the cashflow:
$3,388.16 + $9,515.88 = $12,904.04.
This is the sum of the money in today's terms, considering a 13% discount rate.