Solution-Compute the present value of the complete package

Compute the present value of the complete package

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Reference no: EM13865768

As a result of a slowdown in operations, Mercantile Stores is offering to employees who 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. Use present value tables to compute the present value of the complete package, assuming an interest rate of 8 percent. Round to the nearest dollar.

Reference no: EM13865768

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Compute the present value of the complete package : As a result of a slowdown in operations, Mercantile Stores is offering to employees who 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..

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Compute the present value of the complete package

Reference no: EM13865768

Reference no: EM13865768

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