Toronto Shakespearean Theaters board of directors is considering the replacement of the theaters 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 $97,700 and save the theater $20,000 annually for the next eight years.

Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

1-a.

Prepare a table showing the proposed lighting systems net present value for each of the following discount rates: 8 percent, 10 percent, 12 percent, 14 percent, and 16 percent. (Round "Annuity Discount Factor" to 3 decimal places. Negative amounts of "Net Present Value" should be indicated by a minus sign.)

discount rate	annuity discount factor	annual savings	present value of annual savings	acquisition cost	net present value
8%
10%
12%
14%
16%

Required:

How low could the new lighting systems annual savings be and still justify acceptance of the proposal by the board of directors? Assume the theaters hurdle rate is 12 percent. (Round final answer to 2 decimal places.)