Question: Problem 5-10 Calculating Present Values [LO2] Imprudential, Inc., has an unfunded pension liability of $573 million that must be paid in 20 years. To assess

Problem 5-10 Calculating Present Values [LO2]

Imprudential, Inc., has an unfunded pension liability of $573 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present.

If the relevant discount rate is 6.6 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89)

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