Question
(Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 29 years. In otherwords,
(Present value)Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 29 years. In otherwords, they will need $380,000 in 29 years. ToniFlanders, thecompany's CEO, is scrambling to discount the liability to the present to assist in valuing thefirm's stock. If the appropriate discount rate is 8 percent, what is the present value of theliability?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
