a. The Atlantic Medical Clinic can purchase a new computer system that will save $11,000 annually in billing costs. The computer system will last for nine years and have no salvage value. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinics required rate of return is: eight percent, and eleven percent present value? b. The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last weeks state lottery, Mr. Ormsby has won the weeks grand prize totaling $1.32 million. The State Lottery Commission has indicated that Mr. Ormsby will receive his prize in 20 annual installments of $66,000 each. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: 1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present value of his winnings? c. The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $57,000 $3,000 2 $7,000 $6,000 3 $12,000 4 $13,000 5 $16,000 6 $14,000 7 $12,000 8 $10,000 9 $9,000 10 $9,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No