Good day, colleagues!

I learn on Kaplan Shweser 2011 CFA Level 1. Now I`m on TVM concept.

Please explain me test question on page 132 #13:

An investor will receive an annuity of $4,000 a year for ten years. The first payment is to be received five years from today. At a 9% discount rate, this annuity`s worth today is closest to: A. $16,684 B. $18,186 C. $25,671.

Answer:

Two steps: (1) Find the PV of the 10-year annuity: N=10, I/Y=9, PMT=-4000, FV=0,CPT-PV=25,670.63. This is the present value as of the end of Year 4, (2) Discount PV of the annuity back FOUR years: N=4, PMT=0, FV=-25,670.63, I/Y=9, CPT-PV=18,185.72.

I can not understand, why we need to discount PV of the annuity back FOUR years???