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The Atlantic Medical Clinic can purchase a new computer system that will save $ 9 , 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 eleven years and have no salvage value.
Click here to view Exhibit B and Exhibit B to determine the appropriate 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.
tableMaximum Price Nine percent, Ten percent,
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