Final answer:
The present value of $10,000 received in three years with an 8% after-tax rate of return is approximately $7,582.
Step-by-step explanation:
To calculate the present value of the $10,000 received in three years, we need to consider the after-tax rate of return of 8%. Assuming that the rate of return is applied annually, we can use the formula for calculating the present value of a future amount:
Present Value = Future Value / (1 + r)n
Where:
- Future Value = $10,000
- r = 0.08
- n = 3
Plugging in these values and calculating, the present value of $10,000 received in three years with an 8% after-tax rate of return is approximately $7,582.