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Use the following information to answer questions 29-30 Toronto Shakespearean Theater's board of directors is considering the replacement of the theater's lighting system. The old

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Use the following information to answer questions 29-30 Toronto 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 $75,700 and save the theater $16,000 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 system's net present value for each of the following discount rates: 8 percent, 10 percent, 12 percent, 14 percent, and 16 percent. (Round "Annulty Discount Factor" to 3 decimal places. Negative amounts of "Net Present Value" should be indicated by a minus sign.) Discount Rato Annuity Discount Factor Annual Savings Present Value of Annual Savings Acquisition Cost Net Prosent Value 8% 10% 12% 14% 16% Discount Rato Annulty Discount Factor Annual Savings Present Value of Annual Savings Acquisition Cost Nat Prosent Value 8% 10% 12% 14% 16% 1-b.Based on your findings in requirement 1-a., which of the following statements is true? The net present value does not change as the discount rate increases. The net present value declines as the discount rate increases. The net present value increases as the discount rate increases. ! Required Information Use the following information to answer questions 29-30 Toronto 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 $75,700 and save the theater $16,000 annually for the next elght years. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Exercise 16-30 Sensitivity Analysis; NPV (Section 1) (LO 16-1) 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. (Round final answer to 2 decimal places.) Annual savings

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