Suppose an owner pays $500 million to purchase a hockey team that earns operating profits of $50 million per year. the new owner claims that $200 million of this prices is for the players, which he can depreciate using straight-line depreciation in five years. if the team pays corporate profit taxes of 40 percent, how much does the depreciation of the players save the owner

Imprudential, inc., has an unfunded pension liability of $572 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. if the relevant discount rate is 6.5 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)