As a result of a slowdown in operations, Tradewind Stores is offering employees who have been...

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As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package

business accounting

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Answer 1

Answer #1

Calculation of present value
years		cash flow	pvf @10%	present value
0	Today	93000	1	93000
1	in one year	93000	0.9091	84546.3
1	Annuity	22000	0.9091	20000.2
2		22000	0.8264	18180.8
3		22000	0.7513	16528.6
4		22000	0.683	15026
5		22000	0.6209	13659.8
6		22000	0.5645	12419
Present value				273361
Present value = 273361

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Answer 2

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