JAVA_HOME = C:\Program Files (x86)\Java\jdk1.5.0_16
JRE_HOME = C:\Program Files (x86)\Java\jre1.5.0_16
Your JAVA_HOME and JRE_HOME are set to the Java 1.5 installation hence 1.8 binaries (like javac) are not found.
Set them to the Java 1.8 installation and you should be fine.