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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 $ 1 8

As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package
of $180,000 cash, another $180,000 to be paid in one year, and an annuity of $38,000 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 8 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.)
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