The Atlantic Medical Clinic can purchase a new computer system that will save $7,000 annually in billing costs. The computer system will last for eight years and have no salvage value. Click here to view Exhibit 138.1 and Exhibit 13B-2. to determine the appropriate discount factor(s) using tables. Required: What is the maximum price (.e, 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 answer to the nearest whole dollar amount.) Maximum Price 1. Sixteen percent 2. Twenty percent EXHIBIT 138-1 Present Value of $t 1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.750 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0 308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 100.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 16 0534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.000 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.025 0.023 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0,051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 21 0.439 0.359 0.294 0242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0,015 0013 0.011 0.000 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.03 0.068 0.056 0.046 0.038 0.032 0.026 0,022 0.018 0.015 0.013 0.011 0.009 0.007 0.406 0.326 0.262 0211 0.170 0.13 0.112 0091 0074 0060 0049 0.040 0033 0027 0022 0.018 0,015 0,012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.002 0.066 0.053 0043 0.035 0.028 0.023 0.019 0,015 0.013 0.010 0.008 0.007 0.006 0.005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0,009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.025 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 27 0347 0268 0.207 0.161 0.125 0.098 0076 0060 0047 0037 0 029 0023 0.018 0014 0011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0,016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 29 0321 0243 0.185 0.141 0 107 0 0B2 0063 0048 0037 0020 0022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0 308 0231 0174 0.131 0099 0075 0057 0044 0033 0.026 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0,011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 23 24 EXHIBIT 12-2 Present Value of an Annuity of $1 in Area:11- Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.444 2.402 2.361 2.322 2283 2246 2.210 2.174 2.140 2.106 2074 2.042 2.011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2639 2.589 2.540 2494 2.448 2.404 2.362 5 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2926 2.864 2.803 2.745 2.689 O 5.242 5.076 4917 4.767 4623 4.486 4.355 4 231 4.111 3.998 3.889 3.784 3685 3.589 3.498 3.410 3.326 3 245 3.167 3.092 3020 2951 6002 5.786 5582 5.389 5206 5.033 4868 4.712 4.564 4.423 4.288 4.160 4039 3.922 3.812 3.706 3 605 3508 3416 3.327 3.242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5537 5328 5.132 4,946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 8.111 7.722 7360 7024 6710 6.418 6145 5 889 5.650 5.426 5 216 5 019 4831 4659 4494 43394.192 4054 3923 3799 3682 3571 10 12 13 14 15 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6 207 5.938 5.687 5.453 5.234 5.029 4836 4.656 4.486 4.327 4.177 4,035 3.902 3.776 3.656 9.385 8.863 8 384 7943 7536 7.161 6,814 6.492 6.194 5.918 5.660 5.421 5.197 4988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5,583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.982 6.628 6.302 6.002 5.724 5.468 5229 5.000 4.802 4.611 4.432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7606 7.191 6 811 6.462 6.142 5.847 5 575 5324 5092 4876 4675 4.489 4.315 4.153 4001 3.859 11652 10.838 10.106 9.447 8.851 8.313 7.824 7379 6.974 6,604 6.265 5.954 5,668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3887 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 12.659 11.690 10.828 10.05993728.756 8201 7702 7.250 6.40 6.467 612 5818 5 534 5273 5033 4812 4 608 4.419 4.243 4.080 3.928 13 134 12.085 11.158 10.336 9.604 8950 8365 78397366 6938 6550 6 198 58775 5845 316 5070 4843 4615 4 442 4.263 4097 3942 13.590 12.462 11.470 10 594 98139.129 8514 7.963 7.469 7025 6623 6.259 5 929 5628 5353 5 101 4.870 4657 4.460 4.279 4.110 3954 16 17 19 20 21 22 23 24 25 14.029 12 821 11.764 10.836 10.017 9.292 8 649 8.075 7.562 7.102 6.687 6312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 10 201 9442 8222 8 176 7645 7.170 6.743 6.359 6011 5.606 5.410 5.149 4.909 4690 4.488 4.302 4.130 3.970 14.857 13.489 12 303 11 272 10.371 9.580 883 8.266 2218 7230 6.792 6.399 6,044 5723 5.432 5 167 4925 4.703 4.499 4.311 4.137 3.976 15 247 13 799 12.550 11.469 10.529 9.707 BOS 8 348 7284 7283 6815 6.434 6073 5746 5.451 5.182 4937 4.713 4507 4.318 4.143 3.981 15 622 14 094 12.783 11 654 10 675 9821 907784227343 7330 6873 6 464 6097 5 766 5.467 5 195 4948 4721 4514 4323 4.147 3985 26 27 28 29 30 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4 956 4.728 4520 4.328 4.151 3.988 16 330 14 643 13.211 11.087 10 935 10.027 0237 8.548 7943 7.400 6.935 6,514 6.136 5.798 5,492 5.215 4.964 4.234 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11 051 10.116 9107 602 7984 7.441 6 961 6534 6.152 5810 5.502 5223 4.970 4739 4528 4.335 4.157 3.992 16.984 15.141 13 591 12 278 11.158 10.1989 370 8650 8022 7470 6983 5 551 6 166 5820 5510 5229 4 975 4743 4531 4337 4.159 3994 17.292 15 372 13.765 12 409 11 258 10 2749427 8 694 8055 7.496 7.003 5.566 6.177 5 829 5.517 5235 4.979 4 746 4534 4339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 40