As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $120,000 cash, another $120,000 to be paid in one year, and an annuity of $32,000 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 7 percent. (Futuce 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.)