E Exercise $16-28$ New Present Value with Different Discount Rates $($

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

Page $748$

cost $$129,750$ and save the theater $$27,000$ annually for the next eight years.

Required:

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 $16$ riercent. Use the following headings in your table. Comment on the pattern in the right$-$hand column.

$\backslash$table$[[,$Annuity,Present Value$],[$Discount$,$Discount,Annual,of$,$Acquisition,Net Present$],[$Rate$,$Factor,Savings,Annual Savings,Cost,Value$]]$