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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 $83,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $530,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20-year life of the mortgage. Accordingly, the Claussens desired rate of return on this investment varies as follows: Years 158% Years 61010% Years 112012% 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 $1 and PVA of $1)(Round "PV Factors" to 5 decimal places, intermediate and final answer to the nearest dollar amount.) Maximum purchase price $ '

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