As a result of a slowdown in operations, tradewind stores is offering employees who have been terminated a severance package of $100,000 cash paid today; $50,000 to be paid in one year; and an annuity of $20,000 to be paid each year for 20 years. what is the present value of the package assuming an interest rate of 6 percent?
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Ответ:
PV of $100,000 is $100,000
PV of $50,000 is $47,170
PV of $20,000 paid each year is $229,398
Hence the present value of the package is $376,568
Explanation:
The cash paid today has the same present value i.e. $100,000
The amount of $50,000 which is to be paid next year would have a present value of (taking n=1 and i=6%, we will have the PV factor of 0.9434) $47,170
And present value of annuity of $20,000 to be paid each year for 20 years will be (taking n=20 and i=6%, we will have the Annuity Factor of 11.4699) $229,398
Ответ:
Sitios web y compras en linea
Explanation:
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