Question
Imprudential Inc has an unfunded pension liabilty of $730 million that must be paid in 25 years. To assess the value of the firm's stock,
Imprudential Inc has an unfunded pension liabilty of $730 million that must be paid in 25 years. To assess the value of the firm's stock, fininacial analysts wan tto disscount this liability back to the present. If the relevant discount rate is 5.5%, what is the present value of this liability?
You have just recieved notification that you have won $1million first prize in the lottery. However, the pirze witll be awarded on your 100th birthday 80 years from now. What is the present value of your windfall if the appropriate discount rate is 7.25% Can someone show me how to do these two questions? Thank you.
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