Question
Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $385 comma 000 due in 25 years. In other
Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $385 comma 000 due in 25 years. In other words, they will need $385 comma 000 in 25 years. Toni Flanders, the company's CEO, is scrambling to discount the liability to the present to assist in valuing the firm's stock. If the appropriate discount rate is 9 percent, what is the present value of the liability? If the appropriate discount rate is 9 percent, the present value of the $385 comma 000 liability due in 25 years is $ nothing. (Round to the nearest cent.)
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