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

Trainor 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:Cost of new equipment and timbers$200,000Working capital required$75,000Annual net cash receipts*$105,000Cost to construct new roads in three years$50,000Salvage value of equipment in four years$60,000*Receipts from sale 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. What is the total cash flow in year 4?

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