Renfree Mines, Inc., owns the mining rights to a large tract of land in a mountainous area. 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: Cost of equipment required $ 910,000 Annual net cash receipts 365,000* Working capital required $ 255,000 Cost of road repairs in five years $72,000 Salvage value of equipment in six years 130,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after six years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 17%. (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: a. Determine the net present value of the proposed mining project.(Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Required: a. Determine the net present value of the proposed mining project.(Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Item Year(s) Amount of Cash Flows 17% Factor Present Value of Cash Flows Cost of equipment required Now Now 1-6 5 Salvage Value 6 6 Net present value