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erastova [34]
3 years ago
11

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance packag

e of $128,000 cash, another $139,000 to be paid in one year, and an annuity of $37,500 to be paid each year for four years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) What is the present value of the total severance package, assuming an annual interest rate of 7%
Business
1 answer:
katen-ka-za [31]3 years ago
4 0

Answer:

$127,020

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $37,500

I = 7%

PV = $127,020

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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Answer:

Annual deposit= $2,803.09

Explanation:

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2 years ago
Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, and had an ending sha
djyliett [7]

Answer:

Percentage total return is 12.64%

Dividend yield is 2.19% or 2%

Explanation:

Computing the percentage total return by using the formula:

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Answer:

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