To find the present value (PV) of a cash flow, you can use the formula for the present value of a single future payment:

$PV = \frac{FV}{(1 + r)^n}$

Where:

• $FV$ is the future value of the cash flow (29,950 in this case),
• $r$ is the interest rate (10% or 0.10),
• $n$ is the number of years (8 years in this case).

Now we can substitute the given values:

$PV = \frac{29,950}{(1 + 0.10)^8}$

Let's calculate this.

$PV = \frac{29,950}{(1.10)^8} = \frac{29,950}{2.1436}$

$PV \approx 13,974.29$

Present Value (PV) ≈ 13,974.29

Would you like more details or have any questions?

Here are 5 related questions you could explore:

1. How does increasing the interest rate impact the present value?
2. What is the effect of extending the time period (years) on the present value?
3. How would you calculate the present value if cash flows occurred every year instead of once?
4. What formula is used for the present value of an annuity?
5. What happens to the present value if the future value increases?

Tip: The present value decreases as either the interest rate or the number of years increases, due to the effect of discounting.