Question: Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $122,000 cash, another $133,000

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $122,000 cash, another $133,000 to be paid in one year, and an annuity of $31,500 to be paid each year for four years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

Note: Use appropriate factor(s) from the tables provided.

What is the present value of the total severance package, assuming an annual interest rate of 7 percent?

Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar.

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