As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $110,000 cash, another $110,000 to be paid in one year, and an annuity of $31,000 to be paid each year for 20 years. Use Excel to compute the present value of the complete package, assuming an interest rate of 7 percent. (Round your final answers to the nearest whole dollar amount.) Cash Payment Present value of $110,000 face value Present value of $31,000 annuity Total Excel values based on % % n=
As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $110,000 cash, another $110,000 to be paid in one year, and an annuity of $31,000 to be paid each year for 20 years. Use Excel to compute the present value of the complete package, assuming an interest rate of 7 percent. (Round your final answers to the nearest whole dollar amount.) Cash Payment Present value of $110,000 face value Present value of $31,000 annuity Total Excel values based on % % n=
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package
of $110,000 cash, another $110,000 to be paid in one year, and an annuity of $31,000 to be paid each year for 20 years. Use Excel to
compute the present value of the complete package, assuming an interest rate of 7 percent. (Round your final answers to the nearest
whole dollar amount.)
Cash Payment
Present value of $110,000 face value
Present value of $31,000 annuity
Total
Excel values based on
i=
%
%
n=
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