As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $101,000 cash paid today; $101,000 to be paid in one year; and an annuity of $36,000 to be paid each year for 7 years.

What is the present value of the package assuming an interest rate of 9 percent?

(Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.)

Present Value TABLE 11.1A Future Value of $1 TABLE 11.2 A Present Value of $1 TABLE 11.3A Future Value of an Annuity of $1 TABLE 11.4A Present Value of Annuity of $1