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Silver Dollar Mines is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering

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Silver Dollar Mines 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: 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 companies required rate of return is 12%. Ignore income tax effects. Required: Determine the net present value of the proposed mining project. Should the project be accepted

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