Formula 1 point What is the present value of a cash flow of \( \$ 9,000 \) that you expect to occur eactly 8 years from today? The discount rate is \( 8 \% \). Round your answer to the nearest penink Type your answer_

To calculate the present value (PV) of a cash flow of \$9,000 expected to occur 8 years from today with an annual discount rate of 8%, you can use the **Present Value Formula**: \[ PV = \frac{FV}{(1 + r)^n} \] Where: - \( PV \) = Present Value - \( FV \) = Future Value (\$9,000) - \( r \) = Discount rate (8% or 0.08) - \( n \) = Number of years (8) **Step-by-Step Calculation:** 1. **Calculate \( (1 + r)^n \):** \[ (1 + 0.08)^8 = 1.85093 \] 2. **Divide the Future Value by this factor:** \[ PV = \frac{9000}{1.85093} \approx 4865.59 \] **Rounded to the nearest penny:** \[ PV \approx \$4,865.59 \] **Answer:** \$4,865.59