Final answer:
To calculate the present value, we can use the formula for compound interest: PV = FV / (1 + r)^n. Plugging in the values, the answer is $6,336.
Step-by-step explanation:
To calculate the present value of $8,000 received in four years at a 6% after-tax rate of return, we can use the formula for compound interest:
PV = FV / (1 + r)^n
Where PV is the present value, FV is the future value, r is the rate of return, and n is the number of years.
Plugging in the values, we have:
PV = $8,000 / (1 + 0.06)^4 = $6,336
Therefore, the answer is D. $6,336.
To calculate the present value, we can use the formula for compound interest: PV = FV / (1 + r)^n. Plugging in the values, the answer is $6,336.