Question

Calculate Present Value

As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of

$92,000 cash paid today; $92,000 to be paid in one year; and an annuity of $27,000 to be paid each year for 6 years.

What is the present value of the package assuming an interest rate of 11 percent? (Future Value of $1, Present Value of $1, Future Value

Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest

whole dollar.)


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