As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $170,000 cash, another $170,000 to be paid in one year, and an annuity of $37,000 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 $170,000 face value Present value of $37,000 annuity Total Excel values based on i= 9 % 9 % n= 1 20 $ 170,000 155,963

As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $170,000 cash, another $170,000 to be paid in one year, and an annuity of $37,000 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 $170,000 face value Present value of $37,000 annuity Total Excel values based on i= 9 % 9 % n= 1 20 $ 170,000 155,963

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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