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Incorrect for the work you have completed so far. It does not indicate completion 3 Return to question John and Sally Claussen are considering the purchase of a hardware store from John Duggan The Classes anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $400,000. 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 Claassens' desired rate of return on this investment varies as follows For SV EVA $1. PVA of SIEVAD of 51 and PVAD of 51 (Use appropriate factor(s) from the tables provided) 25 points Years 1-5 Years 6-10 10 Years 11-20 125 Required: What is the maidmum amount the Claussens should pay John Duggan for the hardware store? (Assume that all cash flows occur at the end of the year) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount) Answer is complete but not entirely correct. PV of 570,000 PV of $400.000 Musim pall cash flow selling price for some V 99 MC Graw Hill a O 1 P Type here to search 2 up coes not indicate completion 3 Return to the Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store? Assume that all cashHows occur the end of the year) (Do not round intermediate calculations, Round your final answers to nearest whole dollar amount) 25 Do Answer is complete but not entirely correct. PV of 570,000 cash flow PV of $400,000 elling price ) Muumid for store $ [Years 1.5 Year 5-10 Yours 11-20 Year 20 Total 279 489 164 765 127,344 1 600 41.600 5 571,599 5 3 613,199 MC Graw Hill > G 11 a