8. The heat loss through the windows of a home is estimated to cost the homeowner $412 per year in wasted energy. Thermal windows will reduce heat loss by 93 percent and can be installed for $1,232. The windows will have no salvage value at the end of their estimated life of 8 years. Determine the net present equivalent value of the windows if the interest rate is 10 percent.

a. $412

c. $1,044

b. $812

d. $1,834