Check my 3 John and Sally Claussen are considering the purchase of a hardware store from John Dogan The Claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $400,000. The Claussens will finance the investment with a variable rate mortgage Interest rates will increase twice during the 20 year we of the mortgage. Accordingly, the Claussens' desired rate of return on this investment varies as follows of St. Vott EVALS1 PVA 51. EVAD of Stand PVAD of S1) (Use appropriate factor(s) from the tables provided) 25 point book Years 15 Years 6-10 Years 11-20 103 P tietence Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store? Assume that all cash flows occur at the end of the year) Do not round intermediate calculations. Round your final answers to Dearest whole dollar amount) PV of 570.000 cosh of 400.000 saling price Musical for store Years 1.5 Years 6-10 Yours 11.20 Year 20 13 Nord Check my work 3 Years 1-5 Years 6-10 Years 11 12 25 points Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store (Assume that all cash flows occur at the end of the year) (Do not found intermediate calculations. Round your final answers to nearest whole dollar amount Maximum paid for PV 570,000 cash flow PV of $400,000 sulling price Year 1.5 Years 5-10 Yous 11.20 Yr 20 To