M$9-11($Algo$)$ Computing the Present Value of a Complex Contract L$09-7$

Global Stores is downsizing and must let some employees go$.$ Employees volunteering to leave are being offered a severance

package of $$119,500$ cash, another $$130,500$ to be paid in one year, and an annuity of $$29,000$ to be paid each year for

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.

Present value