4 01:3122 ebook Deep Mines Ltd, of Saskatchewan is contemplating the purchase of equipment to exploit a mineral deposit located 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 assoclated with opening and operating a mine in the area: Cost of new equipment and timbers $236,000 Working capital required 84,000 Net anual cash receipts 108,000^(**) Cost to construct new roads in three years 39,000 Salvage value of equipment in four years 50,000 'Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, Insurance and so forth. It is estimated that the mineral deposit would be exhausted after four years of