Present value of package assuming interest rate

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Reference no: EM131915091

As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $104,000 cash paid today; $104,000 to be paid in one year; and an annuity of $35,000 to be paid each year for 9 years.

What is the present value of the package assuming an interest rate of 11 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 the final answer to nearest whole dollar.)

Reference no: EM131915091

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