Question
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
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 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 and final answer to the nearest whole dollar amount.)
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