Question: Time Trends integrated time clock and payroll system sells for $271,673. At this price, the annual cost savings that the system will generate for Building

Time Trends integrated time clock and payroll system sells for $271,673. At this price, the annual cost savings that the system will generate for Building Keepers, a facilities management company, over its ten-year life will yield an internal rate of return of 13%. Building Keepers requires that all projects achieve a minimum return of 16%.

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What price does Building Keepers need to negotiate with TimeTrends so that the system will achieve that return?

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