Present Value of the Liability Assignment | Homework For You
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, 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 $385,000 liability due in 27 years is $_____Get Finance homework help today