The Atlantic Medical Clinic can purchase a new computer system that will save $$8,000$ annually in billing costs. The computer system will last for nine years and have no salvage value.

Required:

What is the maximum price $($i$.$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$$s required rate of return is: $($Round your final answer to the nearest whole dollar amount.$)$ The Atlantic Medical Clinic can purchase a new computer system that will save $$8,000$ annually in billing costs. The computer system

will last for nine years and have no salvage value.

Required:

What is the maximum price $($i$.$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

Eleven percent

Twelve percent