Cost of new equipment required and timbers Working capital required Annual net cash inflows* Cost to construct new roads in three years Salvage value of equipment in four years $320,000 $100,000 $130,000 $ 59,000 $ 84,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, etc. 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%. Required: a. Determine the net present value of the proposed mining project. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and PV factor. Round the final answers to the nearest whole dollar. Any cash outflows should be indicated by a minus sign.) Item Year(s) Amount of Cash Flows Present Value of Cash Flows Cost of equipment required Now $ (320,000) Working capital required Now (100,000) Net annual cash receipts 1-4 Cost of road construction 3 Salvage value of equipment 4 Working capital released 4 $ 100,000 Net present value $ (420,000)