Martell Products Inc. can purchase a new copier that will save $6,000 per year in copying costs. The copier will last for seven years and have no salvage value.

You must use spreadsheet functions or a financial calculator to solve these questions.

Required:
1-a.	What is the maximum purchase price that Martell Products should be willing to pay for the copier if the companys required rate of return is seven percent? (Round final answer to the nearest dollar amount.)

Present value

$

1-b.	What is the maximum purchase price that Martell Products should be willing to pay for the copier if the companys required rate of return is nine percent? (Round final answer to the nearest dollar amount.)

Present value

$