(SOLVED) The board of management of Nelson New Age Theatre is


Question Description:

$15

The board of management of Nelson New Age Theatre is considering the replacement of the theatre’s lighting system. The old system requires two people to operate it, but the new system would need only a single operator. The new lighting system will cost $129 750 and save the theatre $27 000 annually over the next eight years. The Theatre does not pay any income taxes.
Required:
Construct an Excel® spreadsheet showing the net present value of the proposed lighting each of the following discount rates: 8 percent, 10 percent, 12 percent, 14 percent and 16 percent.

Answer

$15