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The Claussens are considering the purchase of a hardware store. The Claussens anticipate that the store will generate cash flows of

$$86,000$ per year for $20$ years. At the end of $20$ years, they intend to sell the store for an estimated $$560,000.$ 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:

Required:

What is the maximum amount the Claussens should pay for the hardware store? $($Assume that all cash flows occur at the end of the

year.$)$

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Use tables, Excel, or a

financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$