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Golden Company is merged with Silver International and decides to streamline the team. Employees who volunteer to leave are being offered a severance package of
Golden Company is merged with Silver International and decides to streamline the team. Employees who volunteer to leave are being offered a severance package of $128,000 cash today, another $139,000 to be paid in one year, and an annuity of $37,500 to be paid each year for four years with the first payment coming at the end of this year. What is the present value of the total severance package, assuming an annual interest rate of 7%? (Round your answer to the nearest whole dollar.) Present value
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