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John and Sally Claussen are contemplating the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows
John and Sally Claussen are contemplating the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $ per year for years. At the end of years, they intend to sell the store for an estimated $ The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the year life of the mortgage. Accordingly, the Claussens desired rate of return on this investment varies as follows: Years Years Years 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.Use PV of $ and PVA of $Round PV Factors" to decimal places, intermediate and final answer to the nearest dollar amount. Maximum purchase price $
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