(Related to Checkpoint 5.4) (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 30 years. In other words, they will need $390,000 in 30 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 8 percent, what is the present value of the liability? If the appropriate discount rate is 8 percent, the present value of the $390,000 liability due in 30 years is $ (Round to the nearest cent.)

(Related to Checkpoint 5.4) (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 30 years. In other words, they will need $390,000 in 30 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 8 percent, what is the present value of the liability? If the appropriate discount rate is 8 percent, the present value of the $390,000 liability due in 30 years is $ (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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