As a result of a slowdown in operations. Mercantile Stores is offering to empkn ees bo
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As a result of a slowdown in operations. Mercantile Stores is offering to empkn ees « bo have been terminated a severance package of $100,000 cash; another $100,000 to be paid in one year: and an annuity of $30,000 to be paid each year for 20 years. What is the present value of the package, assuming an interest rate of 8 percent?
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