Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 29 years. In other words, they will need $380,000 in 29 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 7 percent, what is the present value of the liability?
If the appropriate discount rate is 7 percent, the present value of the $380,000 liability due in 29 is $ ___(Round to the nearest cent.)
We see that the present value of the liability is given
as=Future Value/(1+rate)^t=380000/1.07^29=53413.86984
Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of...
(Related to Checkpoint 5.4) (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 28 years. In other words, they will need $390,000 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 7 percent, what is the present value of the liability? If the appropriate discount rate is...
(Related to Checkpoint 5.4) (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 26 years. In other words, they will need $390,000 in 26 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 7 percent, what is the present value of the liability? If the appropriate discount rate is...
1. How many years will it take for $500 to grow to $1,021.27 if it's invested at 7 percent compounded annually? 2. Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 25 years. In other words, they will need $390,000 in 25 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...
What is the present value of
this liability?
Corsair, Inc. has an unfunded pension liability of $640 million that must be paid in 30 years. In order to determine the value of the firms' stock, analyst discount the pension liability back to the present. If the relevant discount rate is 6.6 percent, what is the present value of this liability? X V fx =(640/6.803245) board C D Question 7 E F G H Output area: Input area: Present value 94.07...
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