As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $210,000 cash, another $210,000 to be paid in one year, and an annuity of $41,000 to be paid each year for 20 years. Use Excel to compute the present value of the complete package, assuming an interest rate of 9 percent. (Round your final answers to the nearest whole dollar amount.) Cash Payment Present value of $210,000 face value Present value of $41,000 annuity Total Excel values based on no % % 1 9 $ 210,000 192.661
As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $210,000 cash, another $210,000 to be paid in one year, and an annuity of $41,000 to be paid each year for 20 years. Use Excel to compute the present value of the complete package, assuming an interest rate of 9 percent. (Round your final answers to the nearest whole dollar amount.) Cash Payment Present value of $210,000 face value Present value of $41,000 annuity Total Excel values based on no % % 1 9 $ 210,000 192.661
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
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As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package
of $210,000 cash, another $210,000 to be paid in one year, and an annuity of $41,000 to be paid each year for 20 years. Use Excel to
compute the present value of the complete package, assuming an interest rate of 9 percent. (Round your final answers to the nearest
whole dollar amount.)
Cash Payment
Present value of $210,000 face value.
Present value of $41,000 annuity
Total
✪
Excel values based on
%
%
no
1
9
$
210,000
192,661
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