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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 $160,000 cash, another
As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $160,000 cash, another $160,000 to be paid in one year, and an annuity of $36,000 to be paid each year for 20 years. Use present value tables to compute the present value of the complete package, assuming an interest rate of 6 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.) Table values based on i = n = Cash Payment Present value of $160,000 face value Present value of $36,000 annuity % % Total
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