ces Problem 12-16 (Algo) Net Present Value Analysis [LO12-2] Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a 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; Cost of new equipment and timbers Working capital required Annual net cash receipts Cost to construct new roads in three years Salvage value of equipment in four years $460,000 $160,000 $175,000- $ 52,000 $ 77,000 *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 18%. Click here to view Exhibit 128-1 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 What is the net present value of the proposed mining project? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value EXHIBIT 128-1 Present Value of $1:1(1+r)n openstax.org/ 1-2-who-governs-elitism-plur. Periods 4% 5% 1 6% 0.962 0.952 0.943 14% 2 3 0.889 4 5 0822 0.784 0.747 6 0.790 0.746 0.705 7 0.760 0.711 0.665 8 0.731 0.677 9 0.703 0.645 0.592 | 0.544 10 0.676 0.614 0.558 0.508 11 0.650 0.585 0.527 0.475 12 0429 0.625 0.557 0.497 0444 0.397 13 0.601 14 15 0.555 0.481 0.417 16 17 0.513 0436 0.530 0469 0415 0.368 0.577 0.505 0442 0.388 0.340 0362 0.315 0.534 0.458 0.394 0.339 0.292 0.371 0.317 0.270 0.252 0218 18 19 20 21 22 23 0406 0.326 0.262 24 0.390 0.310 0.247 25 26 27 28 29 30 40 8% 9% 10% 7% 13% 11% 12% 17% 21% 19% 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0694 0.683 0.672 0.661 0650 0.640 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792) 0.763 0.735 0.708 0.683 0.659 0636 0.613 0.592 0572 0.552 0.534 0.516 0499 0.482 0.467 0.451 0.437 0.423 0.410 0328 0.713 0.681 0.650 0.621 0593 0.567 0.543 0.519 0497 0.476 0.456 0437 0419 0.402 0.386 0.370 0.355 0.341 0262 0352 0.335 0319 0.303 0.289 0.275 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0432 0410 0.390 0.370 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.467 0.627 0.582 0.540 0.502 0434 0404 0.376 0.351 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.144 0.134 0.194 0.180 0.167 0.155 0.500 | 0.460 0.424 0.391 0.149 0.137 0.126 0.116 0.107 0.463 0422 0.386 0.352 0.322 0.295 | 0.270 | 0.247 0.227 0.208 | 0.191 0.176 0.162 0.388 0.350 0317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0092 0.168 0.152 0.137 | 0.124 0.112 0.102 0.187 0.356 0.319 0.286 0.257 0.231 0.208 0.075 0.068 0061 0.055 0.258 0.229 0.204 0.326 0.290 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.069 0.062 0.055 0.049 0.044 0.160 0.141 0.125 0.111 0.099 0.088 0078 0.181 0.299 0.263 0.232 0.205 0.160 0.183 0.095 0084 0.074 0.065 0.057 0.051 10045 0040 0.035 0.275 0.239 0.209 0.140 0.123 | 0.108 0.062 0054 0.047 0.042 0.036 0.032 0.028 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.231 0.198 0.170 0.146 0.095 0.081 0.024 0.021 0.018 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.494 0416 0.350 0.296 0.250 0.212 0.180 0153 0.130 0.111 00200017 0.037 0.031 0.027 0023 0083 0.070 0060 0475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.022 0.019 0.016 0014 0012 0.149 0.124 0.104 0087 0.073 0.061 0037 | 0.031 0.026 0.456 0.377 0312 0.258 0.215 0.178 0.011 0.009 0.026 0.022 0.018 0.015 0.013 0.093 0.077 0.064 0.053 0.044 0037 0.031 0.294 0.242 0.199 0.164 0.135 0.112 0439 0.359 0.056 0.046 0.038 0.032 0.026 0022 0018 0015 0013 0011 0.009 0422 0.342 0.278 0.226 0.184 0.150 0.123 0,101 0083 0068 0.007 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.074 0.060 0049 0040 0.033 0.211 0.170 0.138 0.112 0.091 0.015 0.028 0023 0019 0015 0.013 0.010 0.008 0.007 0.006 0.066 0.053 0.043 0082 0.158 0.126 0.102 0.197 0047 0038 0.146 0.116 0.092 0.074 0.059 0030 0024 0.020 0016 0013 | 0.010 0.009 0.007 0.006 0.005 0.375 0.295 0233 0.184 0.003 0042 0033 0026 0021 0017 | 0014 0.011 0.009 0.007 0.006 0.005 0.004 0.361 0281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.002 0.009 0.007 0.006 0.005 0.004 0.003 0.047 0.037 0.029 0.023 001K 0014 0.011 0347 0.266 0.098 0076 0060 0207 0.161 0.125 0.005 0.004 0.006 0003 0002 0002 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.002 0.333 0.255 0.196 0.150 0.116 0090 0.009 0054 0004 0.005 0.002 0.002 0012 0.014 0.011 0.008 0.006 0.005 0082 0048 0037 0029 0022 0.063 0.001 0.321 0241 0.185 0.141 0.107 0.002 0.002 0.30 0.231 0.174 0.131 0099 0075 0057 004 0013 0026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.001 0.003 0.004 0.001 0.002 0.001 0.001 0.001 0.000 0.000 0000 0000 0000 0208 0.142 0097 0067 0046 0012 0022 0015 0011 0.004 0.005 15% 16% 18% 20% 22% 23% 24% 25% 0.327 0.083 0.076 0.069 0.051 0.043 0.014 0.051 0.043 0.007 0.005 0005 0.004 Present Value of an Annuity of $1 in Arrears; 1/r(1-(1/(1+r)^n)) Periods 4% 5% 6% I 2 1886 1.859 3 7% 8% 0.962 0.952 0.943 0.935 0.926 1.833 1.808 2.775 2.723 2.673 2.624 9% 0.917 10% 12% 1.783 4 3.630 3.546 3.465 5 4.452 4.329 4.212 6 7 8 6.733 9 7435 10 8.111 7.722 7.360 11 12 13 14 15 10.563 9899 9.295 8.745 11.118 10.380 9.712 9.108 16 11.652 10.838 10.106 9447 8.851 17 12.166 11.274 10.477 9.763 18 12.659 11.690 10.828 10.059 19 20 21 22 23 24 25 26 15.983 14.375 13.003 11 826 10810 9.929 9.161 8485 27 28 29 30 40 16330 14 643 13.211 11.987 10.935 10.027 9237 16.663 14.898 13.406 12.137 11.051 10.116 9.307 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 17-292 15.372 13.765 12 409 11 258 10 274 9427 8.694 19.993 17.159 15.046 13.332 11.925 10.757 9.779 8951 8.548 8.602 17% 18% 20% 22% 16% 15% 14% 11% 13% 0.840 0.833 0.826 0.820 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.665 1.585 1.566 1547 1.528 1.509 1.492 2.074 2042 2.577 2531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 3.517 3433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.100 3.993 3.890 3.791 3.696 3.605 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5242 5076 4917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4,712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 4.799 4.344 4.207 4.078 4.639 4.487 3.726 3.619 3518 3.421 3.329 3.954 3.837 5.335 5.146 4.968 6.463 6.210 5.971 5.747 5.535 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 3.923 3.799 3.682 3571 5.650 6.710 6.418 6.145 5.889 4.659 4.494 4.339 4.192 4.054 7.024 5426 5.216 5019 4.833 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 6.495 6.207 5938 5.687 5A53 8.760 8.306 7887 7499 7.139 6.805 4.793 4.611 4439 4.278 4.127 3.985 3.851 3.725 9.385 8.863 8.384 7.943 7.536 7.161 6814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 9.986 9.394 8.853 8.358 7.904 7487 7.103 6.750 6424 6.122 5.842 5.583 5342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 8.244 7.786 7367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3824 3.859 8.559 6.462 6.142 5847 5.575 5.324 5.092 4876 4.675 4489 4.315 4.153 4.001 8.061 7.506 7.191 6811 6.604 8.313 7.824 7.379 6.974 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 9.122 8.544 8022 7.549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 4.608 4.419 4.243 4.080 3.928 9.372 8.7568.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 3.942 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5877 5584 5316 5070 4.843 4.635 4442 4.263 4097 13.134 12.085 11.158 10.336 9.604 5353 5.101 4.870 4.657 4.460 4.279 4 110 13.590 12.462 11 470 10.594 9818 9.129 8.514 7.963 7.469 7025 6.623 6.259 5.929 5.628 4.121 3.963 14.029 12.821 11.764 10.836 10.0179.292 8.649 8.075 7.562 7.102 6.687 6312 5.973 5.665 5.384 5.127 4891 4.675 4476 4.292 4.130 3.970 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4690 4488 4.302 7.230 6.792 6.399 6.044 5.723 5432 5.167 4.925 4.70) 4499 4.311 4.137 3976 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 4.143 3981 15.247 13.799 12.550] 11 469 10.529 9.707 8.985 8.348 7.784 7283 6835 6434 6.073 5.746 5451 5.182 4937 4.713 4.507 4318 3985 4.948 4.721 4514 4.323 4.147 15.622 14.094 12.783 11 654 10.675 9.823 9.077 8422 7843 7.330 6.873 6464 6097 5.766 5.467 5.195 5206 4956 4.728 4520 4.328 4.151 3988 6.491 6.118 5.783 5.480 3990 7.896 7.372 6.906 6514 6.136 5.798 5492 5215 4.964 4.734 4.524 4332 4.154 7.943 7.409 6935 7.984 7441 6961 6534 6.152 5810 5.502 5223 4.920 4.739 4.5284915 4.157 992 8.022 7470 6983 6551 6.366 5820 5510 5229 4975 4.743 4531 43374.159 8055 7.496 7.000 6.566 6.177 5829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3995 5.548 5258 4.997 4.760 4544 4347 4.106 244 7634 7.105 6642 6233 5.871 19% 21% 23% 0.813 24% 25% 0.806 0.800 1474 1457 1440 2011 1981 1.952 1954 3.994 3999