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As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $150,000 cash,
As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $150,000 cash, another $150,000 to be paid in one year, and an annuity of $35,000 to be paid each year for 10 years. Use present value tables to compute the present value of the complete 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 factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Cash Payment Present value of $150,000 face value) Present value of $35,000 annuity Total Table values based on i= n= 150,000 10 % 10 % 10
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