If the relevant discount rate is 60 percent what is the


Imprudential, Inc., has an unfunded pension liability of $900 million that must be paid in 23 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 6.0 percent, what is the present value of this liability?

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Financial Management: If the relevant discount rate is 60 percent what is the
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