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Vancouver Shakespearean Theater's board of directors is considering the replacement of the theater's lighting system. The old system requires two people to operate it$,$ but the new system would require only a single operator. The new lighting system will cost $$100,450$ and save the theater $$21,000$ annually for the next eight years.

Use Appendix $$ for your reference.

Note: Use appropriate factor$($s$)$ from the tables provided.

Suppose the Vancouver Shakespearean Theater's board is uncertain about the cost savings with the new lighting system.

Required:

How low could the new lighting system's annual savings be and still justify acceptance of the proposal by the board of directors?

Assume the theater's hurdle rate is $12$ percent.

Note: Round final answer to $2$ decimal places.

Annual savings