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 $105,200 and save the theater $22,000 annually for the next eight years.

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

Exercise 16-29 New Present Value with Different Discount Rates (Section 1) (LO 16-1)

Required:

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.)