Vancouver 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 $129,750 and save the theater $27,000 annually for

the next eight years.

Required:

1. Prepare a table showing the proposed lighting systems net present value for each of the following

discount rates: (8%, 12%& 16% only.)

2. Also calculate Payback and AROR