Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $118,500 cash, another $129,500 to be paid in one year, and an annuity of $28,000 to be paid each year for five years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) What is the present value of the total severance package, assuming an annual interest rate of 6%?

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $118,500 cash, another $129,500 to be paid in one year, and an annuity of $28,000 to be paid each year for five years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) What is the present value of the total severance package, assuming an annual interest rate of 6%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 26P

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