Solution-Compute the net present value of a capital project

Compute the net present value of a capital project

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Reference no: EM133126888

Question - 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

Required - Compute the net present value of a capital project to buy new equipment for replacing old equipment?

Reference no: EM133126888

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Compute the net present value of a capital project

Reference no: EM133126888

Reference no: EM133126888

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