A company has a $400 million liability that is due in 20 years. If the relevant discount rate is 5.25 percent, what is the resent value of the liability?

icon
Related questions
Question

A 141.

Subject:- finance 

3. A company has a $400 million liability that is due in 20 years. If the relevant discount rate is 5.25 percent, what is the
present value of the liability?
Transcribed Image Text:3. A company has a $400 million liability that is due in 20 years. If the relevant discount rate is 5.25 percent, what is the present value of the liability?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer