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Aguilaera Co . maintains a defined benefit plan for its employees where vested employees earn an annual retirement payout of 2 . 5 0 %
Aguilaera Co maintains a defined benefit plan for its employees where vested employees earn an annual retirement payout of of their projected final annual salary for each year worked. Benefits vest each year by
until the employee is vested. Assume that new employee Smith earns a starting annual salary of $ but is projected to earn $ annually at her projected retirement date of fifteen years from now. After Smith's
first year of service, determine the present value of the PBO retirement cash flow stream, measured at Smith's retirement date, assuming a year retirement period and a discount rate.
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