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Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $450 million that must be paid in 20 years. To assess the value of

Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $450 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.2 percent, what is the present value of this liability?

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