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The Claussens are considering the purchase of a hardware store. The Claussens anticipate that the store will generate cash flows of $88,000 per year for

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The Claussens are considering the purchase of a hardware store. The Claussens anticipate that the store will generate cash flows of $88,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $580,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20 -year life of the mortgage. Accordingly, the Claussens' desired rate of return on this investment varies as follows: Required: What is the maximum amount the Claussens should pay for the hardware store? (Assume that all cash flows occur at the end of the year.) Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of \$1, PV of \$1, FVA of \$1, PVA of \$1, FVAD of \$1 and PVAD of \$1)

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