As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $97,000 cash paid today; $97,000 to be paid in one year, and an annuity of $30,000 to be paid each year for 3 years.
What is the present value of the package assuming an interest rate of 9 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.)
Calculate present value
Present value = (97000*1+97000*0.9174+30000*2.5313) = $261927
So answer is $261927
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $97,000
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $105,000 cash paid today; $105,000 to be paid in one year; and an annuity of $26,000 to be paid each year for 4 years. What is the present value of the package assuming an interest rate of 9 percent? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate...
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $103,000 cash paid today; $103,000 to be paid in one year; and an annuity of $30,000 to be paid each year for 5 years. What is the present value of the package assuming an interest rate of 12 percent? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate...
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $93,000 cash paid today, 593,000 to be paid in one year, and an annuity of $22,000 to be paid each year for 6 years What is the present value of the package assuming an interest rate of 10 percent? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate...
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $101,000 cash paid today; $101,000 to be paid in one year; and an annuity of $36,000 to be paid each year for 8 years. What is the present value of the package assuming an interest rate of 10 percent? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate...
As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $190,000 cash; another $190,000 to be paid in one year; and an annuity of $39,000 to be paid each year for 20 years. Use present value tables to compute the present value of the package, assuming an interest rate of 9 percent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity...
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 ValueAnnuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the...
Q1: As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $105,000 cash paid today; $105,000 to be paid in one year; and an annuity of $34,000 to be paid each year for 3 years. Q2: After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several...
Fill in the tables Use present value tables to compute the present value of $660,000 to be paid in 20 years, with an interest rate of 8 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 and final answer to the nearest whole dollar amount.) Table Function: Future Value: Present Value: Use present value tables to compute the present value of 20 equal...
Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $127,500 cash, another $138,500 to be paid in one year, and an annuity of $37,000 to be paid each year for five years with the first payment coming at the end of this year. What is the present value of the total severance package, assuming an annual interest rate of 6%
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $10,000 the first year, $16,000 for the next two years, and $19,000 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the total...