You are thinking of investing $200 in a programmable thermostat that you expect will save $40 per year in heating your apartment. You expect to live in your apartment forever, and the thermostat should last for 10 years. After you install the thermostat, there should be no cost to maintain for the 10 years that it will last. You use an 8% discount rate, reflecting your opportunity cost of not making larger payments on a different loan.

Assuming that the benefit is the same in every year (i.e. that real fuel prices do not change), find the annualized net benefit for this project using the formula: annualized net benefit = B - C - K (r(1 + r)^T/(1 + r)^T - 1) where B, C, K, r, and Tare the same as defined above