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 8% Ignore income taxes.

	Old equipment	New equipment
Purchase price	$155 000	$125 000
Accumulated depreciation	7 200	0
Remaining useful life (years)	10	10
Current salvage value	54 000	0
Salvage value in 10 years	20 000	32 000
Annual operating costs	14 000	2 000