As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $104,000 cash paid today; $104,000 to be paid in one year; and an annuity of $37,000 to be paid each year for 9 years. Required: What is the present value of the package assuming an interest rate of 9 percent? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.

To calculate the present value of the severance package, we need to discount each component of the package to its present value using the given interest rate of 9 percent.

1. The first component is $104,000 cash paid today. Since it's paid today, its present value is simply$104,000.

2. The second component is $104,000 to be paid in one year. To find its present value, we use the formula for the present value of a single sum: PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. In this case, FV =$104,000, r = 9% or 0.09, and n = 1. So, PV = $104,000 / (1 + 0.09)^1 =$95,412.84.

3. The third component is an annuity of $37,000 to be paid each year for 9 years. To find its present value, we use the formula for the present value of an annuity: PV = PMT * [(1 - (1 + r)^-n) / r], where PMT is the annuity payment, r is the interest rate, and n is the number of periods. In this case, PMT =$37,000, r = 9% or 0.09, and n = 9. So, PV = $37,000 * [(1 - (1 + 0.09)^-9) / 0.09] =$209,536.16.

Adding up the present values of the three components, we get the total present value of the severance package: $104,000 +$95,412.84 + $209,536.16 =$408,949.

So, the present value of the package, rounded to the nearest whole dollar, is $408,949.