Finding clinic’s required rate of return

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Reference no: EM1311566

Finding clinic's required rate of return

The Atlantic Medical Clinic can purchase a new computer system that will save $7,000 annually in billing costs. The computer system will last for eight years and have no salvage value. Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinic required rate of return is:

a. 16%
b. 20%

Reference no: EM1311566

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