As a result of a slowdown in operations, Tradewind Stores is offering employees who have been...
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As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $110,000 cash paid today: $110,000 to be paid in one year; and an annuity of $33,000 to be paid each year for 5 years. Required: What is the present value of the package assuming an interest rate of 11 percent? (Euture Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar. Present Value As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $110,000 cash paid today: $110,000 to be paid in one year; and an annuity of $33,000 to be paid each year for 5 years. Required: What is the present value of the package assuming an interest rate of 11 percent? (Euture Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar. Present Value
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