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please help Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has
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Windhoek Mines, Ltd., 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 wi be associated with opening and operating a mine in the area: -Receipts from sales of ore, less out-of-pocket costs for solaries, 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 19%. Click here to view Exhibit 128-1 and Exhibit 128-2, 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. What is the net present value of the proposed mining project? (Enter negative amount with o minus sign. Round your final answer to the nearent whole dollar amount.) EXHIBIT 128-1 Present Value of 51: (1+)1 EXHIBrT 12B-2. Present Value of an Annuity of $1 in Arrears: 21[1ti+F1] Step by Step Solution
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