You have been hired to advise an investment management firm. The firm currently has assets held as cash worth £100 million and liabilities that consist of payments of £15 million in 2 years, £20 million in 3 years, £30 million in 4 years, and £50 million in 5 years. The term structure is flat at 4% per year.
What is the present value of the liabilities? [2 marks]

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