Blue, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan.

Average length of time to retirement		14 years
Expected life duration after retirement		10 years
Total pension payment expected each year after retirement
for all employees. Payment made at the end of the year.		$843,800 per year

The interest rate to be used is 9%. On the basis of the information above, determine the present value of the pension obligation (liability). (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The present value of pension obligation (liability)

$________________________

(n) Periods 8% 9% 10% 11% 12% 1.08000 1.11000 1.12000 1 2 1.16640 1.25971 1.36049 1.46933 1.09000 1.18810 1.29503 1.41158 1.53862 1.10000 1.21000 1.33100 1.46410 1.61051 1.23210 1.36763 1.51807 1.68506 1.25440 1.40493 1.57352 1.76234 15% 1.15000 1.32250 1.52088 1.74901 2.01136 3 4 5 6 1.58687 1.71382 1.85093 1.99900 2.15892 1.67710 1.82804 1.99256 2.17189 2.36736 1.77156 1.94872 2.14359 2.35795 2.59374 1.87041 2.07616 2.30454 2.55803 2.83942 1.97382 2.21068 2.47596 2.77308 3.10585 2.31306 2.66002 3.05902 3-51788 4.04556 7 8 9 10 11 12 2.33164 2.51817 2.71962 2.93719 3.17217 2.58043 2.81267 3.06581 3-34173 3.64248 2.85312 3.13843 3.45227 3.79750 4.17725 3.15176 3.49845 3.88328 4.31044 4.78459 3.47855 3.89598 4.36349 4.88711 5.47357 4.65239 5-35025 6.15279 7.07571 8.13706 13 14 15 16 3.42594 3.70002 3.99602 4.31570 4.66096 3.97031 4.32763 4.71712 5.14166 5.60441 4-59497 5.05447 5-55992 6.11591 6.72750 5-31089 5.89509 6.54355 7.26334 8.06231 6.13039 6.86604 7.68997 8.61276 9.64629 9.35762 10.76126 12.37545 14.23177 16.36654 17 18 19 20 21 22 5.03383 5.43654 5.87146 6.34118 6.84847 6.10881 6.65860 7.25787 7.91108 8.62308 7.40025 8.14028 8.95430 9.84973 10.83471 8.94917 9.93357 11.02627 12.23916 13-58546 10.80385 12.10031 13-55235 15.17863 17.00000 18.82152 21.64475 24.89146 28.62518 32.91895 23 24 25