What is 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 12%? Ignore income taxes.

Old New

Equipment Equipment

Purchase price $21,600 $36,000

Accumulated depreciation 7,200 0

Remaining useful life (years) 8 8

Current salvage value 12,000 0

Salvage value in 8 years 1,000 2,000

Annual operating costs 14,000 8,000