Cheyenne, 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 $1,2025.$ 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

Expected life duration after retirement

Total pension payment expected each year after retirement

for all employees. Payment made at the end of the year.

$15$ years

$10$ years

$$837,800$ per year

The interest rate to be used is $11\%.$