Great Lakes Inc. has an unfunded pension liability of $300 million that must be paid in 18

Question:

Great Lakes Inc. has an unfunded pension liability of $300 million that must be paid in 18 years. The financial analyst wants to discount this liability back to present for valuation purposes.
The appropriate is 8%.

What is the present value of this liability?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...