Exercise 11A-5 Basic Present Value Concepts [L011-5] The Atlantic Medical Clinic can purchase a new computer system that will save $4,000 annually in billing costs. The computer system will last for four years and have no salvage value. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinic's required rate of return is: (Use the appropriate table to determine the discount factor(s).) Present Value Purchase x Discount FactorPresent Value 1. Seven percent 2. Nine percent