As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $90.000 cash paid today. $90,000 to be pald in one year, and an annulty of $24.000 to be paid each year for 8 years. What is the present value of the package assuming an interest rate of 9 percent? (Euture Value of $1. Present Value of $1. Euture Value Annulty of $1. Present Value Annuity of $1) (Use oppropriate factor(s) from the tables provided. Round the final answer to nearest whole doller.) Present Value
As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $90.000 cash paid today. $90,000 to be pald in one year, and an annulty of $24.000 to be paid each year for 8 years. What is the present value of the package assuming an interest rate of 9 percent? (Euture Value of $1. Present Value of $1. Euture Value Annulty of $1. Present Value Annuity of $1) (Use oppropriate factor(s) from the tables provided. Round the final answer to nearest whole doller.) Present Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of
$90,000 cash paid today. $90,000 to be pald in one year, and an annulty of $24,000 to be paid each year for 8 years.
What is the present value of the package assuming an interest rate of 9 percent? (Euture Value of $1. Present Value of $1. Euture Value
Annulty of $1. Present Value Annuity of $1) (Use oppropriate factor(s) from the tables provided. Round the final answer to nearest
whole dollar.)
Present Value
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