esi 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 148-1 and Exhibit 148-2, 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 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 14B-1 and Exhibit 14B-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 Should the project be accepted? OYes ONO < Required A Required B EXHIBIT 14B-1 Present Value of $1; 1(1+r)n Periods 4% 5% 1 0.962 0.952 6% 0.943 7% 8% 9% 11% 12% 2 0.925 0.907 0.890 3 0.889 0.864 0.840 4 0.855 0.823 0.792 5 0.822 0.784 0.747 6 0.790 0.746 0.705 7 0.760 0.711 0.665 0.935 0.926 0.917 0.873 0.857 0.842 0.816 0.794 0.772 0.763 0.735 0.708 0.713 0.681 0.650 0.666 0.630 0.596 0.623 0.583 0.547 10% 13% 14% 15% 0.909 0.901 0.893 0.885 0.877 0.870 0.826 0.812 0.797 0.783 0.769 0.756 0.751 0.731 0.712 0.693 0.675 0.658 0.683 0.659 0.636 0.613 0.592 0572 0.621 0.593 0.567 0.543 0.519 0.497 8 9 0.703 0.645 0.592 0.731 0.677 0.627 0.582 0.540 0.502 0.544 0.500 0.460 10 0.676 0.614 0.558 11 0.650 0.585 0.527 0.475 121 0.625 0.557 0.497 13 0.601 0.530 0.469 14 15 16 0.577 0.555 0481 0.417 0.534 0.458 0.394 17 0.513 0.436 0.371 18 0.494 0416 0.350 19 0475 0.396 20 21 22 23 24 25 26 27 28 29 30 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.862 0.855 | 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.743 | 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.552 0.534 0.516 0.499 0.482 0.467 0451 0.437 0423 0.410 0476 0.456 0437 0419 0.402 0.386 0.370 0.355 0341 0.328 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 | 0.335 0.319 0.303 0.289 0.275 0.262 0.513 0.482 0452 0425 0.400 0.376 0.354 0.333 0314 0.296 0.279 0.263 0.249 0.235 0222 0.210 0467 0434 0.404 0.376) 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0218 0.204 0.191 0.179 0.168 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.508 0.463 0.422 0.386 0.352 0322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.429 0.388 0.350 0.317 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 0.444 0.397 0.156 0.319 0.286 0.257 0.231 0.208 0.187 0.168 | 0.152 | 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.1811 0.160 0.141 0.125 0.111 0.099 0.088 0078 0.069 0.062 0.055 0.049 0.044 0.362 0315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0,035 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0317 0.270 0.231 0.198 0.170 0.146 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 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.456 0.377 0.312) 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0014 0.012 0439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0,037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0023 0.019 0015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0016 0013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0,207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 401 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015. 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.180 0.167 0.155 0.144 0.134 EXHIBIT 148-2 Present Value of an Annuity of $1 in Arrears; Ir[1-1(1+r)nl Periods 4% 1 2 1.886 1.859 5% 6% 7% 0.962 0.952 0.943 0.935 1833 1.808 3 2.775 2.723 4 3.630 3.546 5 4.452 4.329 6 5.242 7 8 6.733 6.463 6.210 5.971 edit 9 tem 10 8.111 7435 7.108 6.802 6.515 7.722 7.360 7.024 11 8.760 8.306 7.887 7.499 930 12 tant 13 14 15 16 17 9.385 8.863 8.384 7.943 9.986 9.394) 8.853 8.358 10.563 9.899 9.295 8.745 11.118 10.380 9.712 9.108 11.652 10.838 10.106 9.447 12.166 11.274 10.477 9.763 18 19 8.950 8.365 20 21 22 23 10.201 9.442 14.857 13.489 12.303 11 272 10.371 9.580 13.590 12.462 11.470 10.594 | 9.818. 9.129 8.514 14.029 12.821 11.764 10.836 10.017 9.292 14.451 13.163 | 12.042 11.061 8.883 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 25 26 27 28 29 30 15.622 14.094 12.783 11.654 10.675 9.823 9.077 15.983 14.375| 13.003 11 826 10.810 9.929 9.161 8.488 16330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 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 9.427 7.943 7409 6.935 7.984 7441 6.961 6.534 8.022 7470 6.983 6.551 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8951 8.694 8.055 7.496 7.003 6.566 6.642 8.244 7.634 7.105 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1585 1.566 1.547 1.528 1.509 1.492 1.474 1457 1440 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2042 2011 1981 1952 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2448 2.404 2.362 4.212 4.100 3.993 3.890 3.791 3.696 3.605 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 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3410 3326 3.245 3.167 3.092 3.020 2.951 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 3416 3.327 3.242 3.161 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3518 3.421 3.329 6.247 5995 5.759 5537 5328 5.132 4946 4.772 4.607 4451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 6.710 6.418 6.145 5.889 5.650 5426 5.216 5.019 4.833 4.659 4494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 7.139 6.805 6.495 6.207 5.938 5.687 5453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 7.536 7.161 6.814 6492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4439 4.278 4.127 3.985 3.851 3725 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 8.244 7.786 7.367 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 3.824 8.559 8.061 7.606 7.191 6811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4489 4.315 4.153 4001 3.859 8.851 8.313 7.824 7.379 6.974 6.604 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 8.022 7549 7.120 6.729 6.373 6047 5.749 5475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7,702 7.250 6.840 6.467 4.080 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4419 4.243 3.928 13.134 12.085 11.158 10.336 9.604 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 | 4.442 | 4.263 4.097 3.942 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 8.772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 8.266 7.718 7.230 6.792 6.399 6044 5.723 5432 5.167 4.925 4.703 4.499 4.311 4.137 3976 8.348 7.784 7.283 6.835 6434 6073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4,143 3.981 8.422 7843 7.330 | 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4514 4.323 4.147 3.985 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.9561 4.728 4.520 4.328 4.151 3.988 6514 6.136 5.798 5.492 5.215 4.964 4,734 4524 4.332 4.154 3.990 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 5.820 | 5510 5229 4.975 4.743 4.531 4.337 4.159 3.994 5.829 | 5.517 5.235 4979 4.746 4.534 4.339 4.160 3.995 5.871 | 5.548 5.258 4.760 4544 4.347 4.166 3.999 6.152 6.166 6.177 6.233 4997