Imprudential, Inc., has an unfunded pension liability of $675 million that must be paid in 25 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present.
Required:
If the relevant discount rate is 6 percent, what is the present value of this liability? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)
Present value $