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Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build. Click here to view Exhibit 128-1 and Exhibit

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Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build. Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What lump sum amount should the company invest now to have the $500,000 available at the end of the five-year period? Assume that the company can invest money at: (Round your final answers to the nearest whole dollar amount.) Present Value 1 Ten percent 2 Fourteen percent The Atlantic Medical Clinic can purchase a new computer system that will save $7.000 annually in biling costs. The computer system will last for eight years and have no salvage value. Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What is the maximum price (ie, 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 answers to the nearest whole dollar amount.) Maximum Price 1. Sixteen percent 2. Twenty percent A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: $329,000 Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 70,000 10 years Required: 1a. Compute the payback period for the equipment 1b. If the company requires a payback period of four years or less, would the equipment be purchased? 2a Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 14%? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Payback period years H 1 Req 1B >

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