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What is the present value of the total severance package

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Question - Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $124,500 cash, another $135,500 to be paid in one year, and an annuity of $34,000 to be paid each year for five years with the first payment coming at the end of this year. (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.)

What is the present value of the total severance package, assuming an annual interest rate of 6%?

Reference no: EM132483678

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