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5.9. A company has just realized an accounting error that has resulted in an unfunded liability of $ 380,000 due in 29 years. In otherwords,
5.9.
A company has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 29 years. In otherwords, they will need $380,000 in 29 years. Thecompany's CEO, is scrambling to discount the liability to the present to assist in valuing thefirm's stock.
If the appropriate discount rate is 7 percent, the present value of the $380,000 liability due in 29 years is $_________
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