Exercise 14A-3 (Algo) Basic Present Value Concepts [LO14-7] In eight years, when he is discharged from the Air Force Steve wants to buy a $16.000 power boat Click here to view Excubit 148.1 and Exshill1.148_2. to determine the appropriate discount factor(s) using tables. Required: What lump sum amount must Steve invest now to have the $16.000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Eleven percent 2 Twelve percent Exercise 14A-5 (Algo) Basic Present Value Concepts (L014-7] The Atlantic Medical Clinic can purchase a new computer system that will save $10,000 annually in billing costs. The computer system will last for eleven years and have no salvage value Click here to view Exhitalt 148_1 and Exhibit 148.2. to determine the appropriate discount factors) using tables. Required: What is the maximum price (le the price that exactly equals the present value of the annual savings in buling costs) that the Atlantic Medical Clinic should be willing to pay for the new computer system if the clinic's required rate of retum I. (Round your final answer to the nearest whole dollar amount.) Maximum Price 1 Nine Docent 2Ton percent Exercise 14A-4 (Algo) Basic Present Value Concepts (L014-7) Fraser Company will need a new warehouse in nine years. The warehouse will cost $410,000 to build. Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables, Required: What lump-sum amount should the company invest now to have the $410,000 available at the end of the nine-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1 Eight percent 2 Thirteen percent Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines staskeves, SA Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 470,000 Variable expenses Variable manufacturing expenses $ 139,000 Sales commissions 52.000 Shipping 23,000 Total variable expenses 214,000 Contribution margin 256,000 Fixed expenses Advertising (for the bilge pump product line) 26,000 Depreciation of equipment (no resale value) 1011000 General factory overhead 37,600 Salary of product-line manager 116,000 Insurance on inventories 7.000 Purchasing department Total fixed expenses 341.000 Net operating loss $ 85,000) 47.0001 "Common costs allocated on the basis of machine hours. Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses Required: What is the financial advantage (disadvantage of discontinuing the bilge pump product line? Financial (disadvantage