The Liability: Present Value of Benefit Cash Flows with NPV
This lesson is part of the course
In this lesson
You discount the Halvern Plan's benefit cash flows year by year, total the present values, confirm the result with NPV and measure how much of the liability falls due in the next five years.
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Lessons in this course
- The DB Benefit Formula: Accrual Rate × Service × Final Salary Locked
- Projected Benefit Cash Flows by Year Locked
- The Liability: Present Value of Benefit Cash Flows with NPV Locked
- Funding Ratio, Surplus & Deficit and a Simple Stress Test Locked
- Liability Sensitivity: Duration Estimate vs Full Revaluation Locked
- Closing the Deficit: Recovery-Plan Contributions with PMT Locked
- Asset Allocation: Expected Return vs Liability Growth Locked
- Liability-Driven Investing: Interest-Rate Hedge Ratio by Duration Matching Locked