An electrical energy audit indicates that lighting consumes 12.5 10⁶ kWh per year. By using more efficient lighting fixtures, electrical energy savings of 8% can be achieved. The additional cost for these energy efficient lighting fixtures is about $90,000 (due mostly to the need for new ballasts). Assuming that the average energy charge is $ 0.06 per kWh, is the expenditure justified based on a minimum rate of return (i.e., a discount rate) of 7.0 %. Assume a 10-year life cycle and use the present worth, annual cost, and rate of return methods.