Vancouver 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 $$156,700$ and save the theater $$32,000$ annually for the next eight years.

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

Suppose the Vancouver Shakespearean Theater$$s board is uncertain about the cost savings with the new lighting system.

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.