(PLEASE DO IN EXCEL AND SHOW YOUR WORK!!!! Thank you!)

The Minnesota Mining, Company, owns the mining rights to a large tract of land in western North Dakota. The tract contains a mineral deposit that the company believes might be commercially attractive to mine and sell. 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: $850,000 Working capital required Cost of road repairs in three years . . . . . . . ._. . . .. Salvage value of equipment in five years .. . . . . . .. . . . $100,000 $60,000 $200,000 Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth The mineral deposit would be exhausted after five years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 14% Required: (using an excel spreadsheet) Prepare a net present value analysis of the proposed mining project. Should the project be accepted? Explain