Value Based Financial Management

[Fabu]

I need help with a value (194,000) on the Value Based Financial Management example in the Infinite Actuary handout page 2 E1.1.a notes.

The question is as follows: Calculate (a) the embedded value as of EOY 2005 and (b) the
value-based earnings in 2005. How did Anita obtain the value 194,000 and the value
-336,000 on the next page. Thanks in advance.

[inexactuary]

I think the 194,000 is a mistake that gets carried through to the -336,000. The numbers should be 464,000 and -66,000.

[Fabu]

Thank you very much and have a nice day.