EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; (1+r)" Periods 4% 5% 6% 1 0.962 0.952 2 1.886 1.859 0.943 1.833 7% 8% 0.935 0.926 3 2.775 1.808 1.783 2.723 2.673 2.624 2.577 4 3.630 3.546 3.465 3.387 3.312 9% 0.917 1.759 2.531 3.240 5 4.452 4.329 4.212 4.100 3.993 3.890 6 5.242 5.076 4.917 4.767 4.623 4.486 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 9 10 11 12 7.435 7.108 6.802 6.515 8.111 7.722 7.360 7.024 8.760 8.306 7.887 7.499 9.385 8.863 8.384 7.943 6.247 5.995 6.710 6.418 5.759 6.145 5.889 7.139 6.805 6.495 6.207 5.938 7.536 7.161 6.814 6.492 6.194 5.687 5.453 5.918 | 5.660 13 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 16 11.652 10.838 10.106 9.447 8.851 17 12.166 11.274 10.477 9.763 9.122 18 12.659 11.690 10.828 10.059 9.372 8.756 19 13.134 12.085 11.158 10.336 9.604 8.950 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 23 24 25 26 27 28 29 30 9.370 | 8.650 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 |2.074 2.042 2.011 1.981 1.952 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 5.146 | 4.968 4.799 4.639 4.487 4.344 | 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.537 5.328 5.132 4.946 | 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 | 4.121 3.963 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 | 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 | 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 | 13.591 12.278| 11.158 | 10.198 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 8.055 7.496 7.003 6.566 8.244 7.634 7.105 6.642 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3.995 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; + - (1+r)' Periods 4% 1 2 3 4 5 6 5.242 5.076 4.917 4.767 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 8 6.733 6.463 6.210 5.971 5.747 5.535 9 7.435 7.108 6.802 6.515 6.247 10 8.111 7.722 7.360 7.024 6.710 11 8.760 8.306 7.887 7.499 12 9.385 8.863 8.384 7.943 13 9.986 9.394 8.853 14 10.563 9.899 9.295 8.745 8.244 7.786 5.146 5.759 5.537 6.418 6.145 5.889 7.139 6.805 6.495 6.207 7.536 7.161 6.814 6.492 8.358 7.904 7.487 7.103 6.750 7.367 6.982 5.335 5.995 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 17 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 19 13.134 12.085 | 11.158 10.336 9.604 8.950 8.365 7.839 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 22 14.451 13.163 | 12.042 | 11.061 10.201 9.442 8.772 8.176 7.645 23 24 25 26 27 28 14.857 13.489 12.303 11.272 10.371 9.580 15.247 13.799 12.550 11.469 10.529 9.707 15.622 14.094 | 12.783 | 11.654 10.675 9.823 9.077 15.983 14.375 13.003 11.826 10.810 9.929 9.161 16.330 14.643 13.211 11.987 10.935 10.027 9.237 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.883 8.266 7.718 7.170 6.743 7.230 6.792 8.985 8.348 7.784 7.283 6.835 8.422 7.843 7.330 6.873 8.488 8.548 8.602 7.943 7.984 7.896 7.372 6.906 7.409 6.935 29 30 16.984 15.141 13.591 12.278 11.158 10.198 9.370 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.650 8.022 8.694 8.055 40 19.793 17.159 | 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 6.514 7.441 6.961 6.534 7.470 6.983 6.551 7.496 7.003 6.566 7.105 6.642 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 5.938 5.687 5.453 5.234 5.029 4.836 4.656 | 4.486 4.327 4.177 4.035 3.902 3.776 3.656 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 6.434 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 6.464 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3.995 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 4.576 4.391 4.219 4.059 3.910 4.608 4.419 4.243 4.080 3.928 6.491 6.073 6.097 6.118 The Atlantic Medical Clinic can purchase a new computer system that will save $3,000 annually in billing costs. The computer system will last for five years and have no salvage value. Click here to view Exhibit 14B-1 and Exhibit 14B-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) Atlantic Medical Clinic should be willing to pay for the new computer system if the clinic's required rate of return is: Note: Round your final answer to the nearest whole dollar amount. 1. Six percent 2. Twelve percent Maximum Price