Finance Assignment | Professional Writing
June 9th, 2020
Smith Consulting just realized an accounting error that has resulted in an unfunded liability of $385,000 due in 27 years. In other words, they will need $385,000 in 27 years.
Ray Smith, thecompany’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 theliability?
If the appropriate discount rate is 9 percent, the present value of the $385,000 liability due in 27 years is $_____
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