Question: Problem 5-10 Calculating Present Values [LO2] Imprudential, Inc., has an unfunded pension liability of $584 million that must be paid in 20 years. To assess
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Problem 5-10 Calculating Present Values [LO2] Imprudential, Inc., has an unfunded pension liability of $584 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 77 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) Present value You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect). 72 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) Present value Your coin collection contains 49 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2059, assuming they appreciate at an annual rate of 5.2 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value
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