Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability...
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Finance
Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of
$380 comma 000
due in
28
years. In other words, they will need
$380 comma 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
6
percent, what is the present value of the liability?
If the appropriate discount rate is
6
percent, the present value of the
$380 comma 000
liability due in
28
years is
$nothing
.
(Round to the nearest cent.)
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