12 Graded Homework Sarved 2 Exercise 12-14 Comparison of Projects Using Net Present Value (L012-2) Labeau Products, Ltd., of Perth, Australia, has $16,000 to invest. The company is trying to decide between two alternative uses fc funds as follows: Invest Invest -Book Project Project Print Tences Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project $ 16,000 $ 16,000 $ 5,000 $ 35,000 years 6 years The company's discount rate is 15%. Click here to view Exhibit 12B-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Problem 12-16 Net Present Value Analysis (LO12-2] 16.66 Doints Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: eBook Cost of new equipment and timbers Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in four years $ 500,000 $ 180,000 $195.000 $ 56,000 $ 81.000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 22%. Click here to view Exhibit 123.1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables, Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted? Complete this question by entering your answers in the tabs below. Required A Required B