Compute the net present value of a capital project to buy new equipment for replacing old equipment, given the following data and a minimum return of 6% Ignore income taxes. Old equipment New equipment Answer: Purchase price Accumulated depreciation 7 200 Remaining useful life 10 $127 000 $179 000 0 10 (years) Current salvage value 67 000 0 Salvage value in 10 years 20 000 29 000 Annual operating costs 15 000 2 000