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Imprudential, Inc., has an unfunded pension liability of $765 million that must be paid in 25 years. To assess the value of the firms stock,

Imprudential, Inc., has an unfunded pension liability of $765 million that must be paid in 25 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present.

Required:

If the relevant discount rate is 8 percent, what is the present value of this liability?

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