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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...
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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 $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
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