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The Atlantic Medical Clinic can purchase a new computer system that will save $ 7 , 0 0 0 annually in billing costs. The computer
The Atlantic Medical Clinic can purchase a new computer system that will save $ annually in billing costs. The computer system
will last for nilne years and have no salvage value.
Click here to vew Exhiblt and Exhiblt to determine the approprlate discount factors using tables.
Required:
What is the maximum price Ie the price that exactly equals the present value of the annual savings In billing costs Atlantic Medical
Clinic should be willing to pay for the new computer system if the clinic's required rate of return is:
Note: Round your final answer to the nearest whole dollar amount.
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