The Atlantic Medical Clinic can purchase a new computer system that will save $5,000 annually in billing costs. The computer system will last for eight years and have no salvage value.

Use Excel or a financial calculator to solve. Round answers to the nearest dollar.

Required:

Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinics required rate of return is:

The Atlantic Medical Clinic can purchase a new computer system that will save $5,000 annually in billing costs. The computer system will last for eight years and have no salvage value. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinic's required rate of return is: Present Value 1. Twelve percent 2. Thirteen percent