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Determining the present value

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(Present value)

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 28 years. In other words, they will need $380,000 in 28 years. Toni Flanders, the company's CEO, is scrambling to discount the liability to the present to assist in valuing the firm's stock. If the appropriate discount rate is 9 percent, what is the present value of the liability?

Reference no: EM131076397

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