Imprudential, Incorporated, has an unfunded pension liability of \( \$ 753 \) million that must be paid in 15 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 7 percent, what is the present value of this liability? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., \( \mathbf{1 , 2 3 4 , 5 6 7 . 8 9 .} \) Present value

To determine the present value of Imprudential, Incorporated's unfunded pension liability of \$753 million due in 15 years with a discount rate of 7%, we can use the present value formula for a single future amount: \[ PV = \frac{FV}{(1 + r)^n} \] Where: - \( PV \) = Present Value - \( FV \) = Future Value (\$753,000,000) - \( r \) = Discount rate (7% or 0.07) - \( n \) = Number of years (15) **Step-by-Step Calculation:** 1. **Calculate the discount factor \((1 + r)^n\):** \[ (1.07)^{15} \approx 2.75887914 \] 2. **Compute the present value:** \[ PV = \frac{753,000,000}{2.75887914} \approx 272,936,900.00 \] **Final Answer:** \[ \boxed{272936900.00} \]