Exercise $12$A$-5($Algo$)$ Basic Present Value Concepts $[$LO$12-7]$

The Atlantic Medical Clinic can purchase a new computer system that will save $$5,000$ annually in billing costs. The computer system will last for three years and have no salvage value.

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What is the maximum price $($i$.$e$.,$ the price that exactly equals the present value of the annual savings in billing costs$)$ that the Atlantic Medical Clinic should be willing to pay for the new computer system if the clinic's required rate of return is: $($Round your final answer to the nearest whole dollar amount.$)$

$\backslash$table$[[,$Maximum Price$],[1.$ Eight percent,$],[2.$ Ten percent,$]]$