Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $60 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 500 one-year subscriptions and received payments in advance from all new subscribers. Only 350 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)

Evans Ltd. is now considering the possibility of offering a lifetime membership option to its subscribers. Under this proposal, subscribers could receive the monthly newsletter throughout their lives by paying a flat fee of $800. The one-year subscription rate of $60 would continue to apply to new and existing subscribers who choose to subscribe on an annual basis. Assume that the average age of Evans Ltd.s current subscribers is 38 and their average life expectancy is 78 years. Evans Ltd.s average interest rate on long-term debt is 10%.