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 associated with opening and operating a mine in the area Cost of new equipment and timbers $216000 Working capital required 79000 Net annual cash receipt 98000 Cost to construct new roads in three years 34000 Salvage value of equipment in four years 50000 Receipts from sales of ore less out of pockets costs for salaries utilities insurance and so forth. It is estimated that 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 discount rate is 20% Determine the NPV of the proposed mining project