The trustees of the Danube School of Art and Music, located in Tuttlingen, Germany, are considering a major overhaul of the school s audio system. With or without the overhaul, the system will be replaced in two years. If an overhaul is done now, the trustees expect to save the following repair costs during the next two years: year 1. $3,000: year 2. $5,000. The overhaul will cost $6.664. Required: Compute the internal rate of return on the proposed overhaul. Toronto Shakespearean Theater's board of directors is considering the replacement ot 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 $129.750 and save the theater $27,000 annually for the next eight years. Required: Prepare a table showing the proposed lighting system's net present value for each of the following discount rates: 8 percent, 10 percent, 12 percent, 14 percent, and 16 percent. Use the following headings in your table. Comment on the pattern in the net present value column. Discount Rate Annuity Discount Factor Annual Savings Present Value of Annual Savings Acquisition Cost Net Present Value Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change it the following information changes: the new lighting system will cost $131,000, and the annual savings amount to $27, 500