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 would be associated with opening and operating a mine in the area: Cost of new equipment and timbers Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in four years $ 410,000 $ 135,000 $ 150,000* $ 47,000 $ 72,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-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. Required A Required B What is the net present value of the proposed mining project? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value EXHIBIT 12B-1 Present Value of $1; 1 9 Periods 4% 5% 6% 7% 8% 9% 10% 11% 2% 3% 4% 5% 6% 7% 18% 19% 20% 21% 22% 23% 24% 25% 0962 0952 0943 0935 0926 097 0909 0901 0893 0.885 08770870 08620855 08470840 0833 0826 0820 083 0806 0800 2 0925 0907 0890 0873 0857 0842 0826 0812 0797 0783 0769 0756 0743 0731 0718 0706 0694 0683 0672 0661 0650 0640 3 10889 0.864 0.840 0816 0794 072 0751 0731 0712 0693 0675 0658 0641 0624 0609 0593 0579 0564 0551 0.537 0524 0512 10855 0823 0792 0763 0735 0708 0683 0659 0636 0.613 0592 0572 0552 0534 0516 0499 0.482 0.467 0451 0437 0423 0410 5 0822 0784 0747 0713 0681 0650 0621 0593 0567 0543 0519 0497 0476 0456 0437 0419 0402 0386 0370 0355 0341 0328 6 0790 0.746 0705 0.666 0630 0596 0564 0535 0507 0.480 0.456 0432 0410 0390 0370 0352 0.335 0319 0303 0.289 0275 0262 10760 07 0665 0623 0583 0547 053 0482 0452 0.425 0400 0.376 0354 033 0314 0.296 0279 0.263 0249 0.235 0222 0210 0731 0677 0627 0582 0.540 0502 0467 0434 0.404 0.376 0351 0327 0305 0285 0266 0249 0.233 0218 0204 0191 0179 0168 10.703 0645 0592 0.544 0500 0460 0424 0391 0361 0333 0308 0284 0263 0.243 0.225 0.209 0194 0180 0167 0155 0144 0134 10 0676 0614 0558 0508 0463 0422 0386 0352 0322 0295 0270 0.247 0227 0208 0191 0176 0162 0149 0137 0126 016 0107 0650 0585 0527 0475 0429 0388 0350 0317 0.287 0261 0237 0215 0195 0.178 0162 0148 0135 0123 0112 0103 0094 0086 0625 057 0497 044 0397 0356 039 0286 0257 0.231 0208 0187 0168 0152 0137 0124 012 0102 0092 0083 0076 0069 3 0601 0530 0469 0.415 0368 0326 0290 0.258 0.229 0.204 0182 0163 0145 0130 016 0104 0093 0084 0075 0068 0061 0055 4 057 0505 0442 0388 0340 0299 0263 0.232 0205 0181 0160 0141 0125 011 0.099 0088 0078 0069 0062 0055 0049 0.044 5 0555 0481 047 0362 0315 0275 0239 0209 0183 0160 0140 0123 0108 0095 0084 0074 0065 0057 0051 0045 0040 0035 16 0.534 0458 0394 0339 0292 0252 0218 0188 0163 0141 0123 0107 0093 0.081 0071 0062 0054 0047 0042 0036 0032 0028 1053 0436 0371 037 0270 0231 0198 0170 0146 0125 0108 0093 0080 0069 0060 0052 0045 0039 0034 0030 0026 0023 18 0494 046 0.350 0296 0250 0212 0180 0153 0130 0.111 0.095 0081 0069 0059 0051 0044 0038 0032 0028 0024 0021 0018 19 10475 0396 0331 0277 0232 0194 0164 0138 0116 0.098 0.083 0070 0060 0.051 0043 0037 0031 0027 0023 0020 007 0014 20 0.456 037 0312 0258 0215 0178 0.149 0124 0104 0.087 0073 0061 0051 0.043 0037 0031 0026 0022 0019 0016 004 0012 21 0.439 0359 0294 0242 0199 0164 0.135 012 0093 007 0064 0.053 0044 0037 0.031 0026 0022 0018 0015 0013 001 0009 22 0422 0342 0.278 0226 0184 0150 0123 0101 0083 0.068 0056 0046 0038 0032 0026 0022 0.018 005 003 001 0009 0007 23 0406 0326 0.262 0.211 0170 0138 012 0091 0074 0.060 0049 0040 0033 0027 0022 0018 005 0012 0010 0009 0007 0006 24 0390 0310 0247 0197 0158 0126 0102 0082 0066 0053 0.043 0035 0028 0023 000 0015 0013 0010 0008 0007 0006 0005 0375 0295 0233 0184 0146 0116 0092 0074 0059 0047 0038 0030 0024 0020 0016 003 0010 0009 0007 0006 0005 0004 0361 0281 0220 072 015 0106 0.084 0066 0053 0042 0033 0026 0021 007 0014 0011 0.009 0007 0006 0005 0004 0.003 | 0347 0268 0207 0161 0125 0098 0076 0060 0047 0.037 0029 0023 0018 0014 001 0.009 0007 0006 0005 0004 0003 0002 28 0.333 0255 0196 0150 016 0090 0069 0054 0042 0.033 0026 0020 0016 0.02 0010 0008 0006 0005 0004 0003 0002 0002 29 0321 0243 0185 0141 0107 0082 0063 0048 0037 0.029 0.022 007 0014 0.01 0.008 0006 0.005 0004 0003 0002 0.002 0.002 30 0.308 0231 0.174 0131 0099 0075 0057 0044 0033 0026 0020 0.015 0012 02009 000 0005 0.004 0003 0003 0002 0002 0001 40 0208 0142 0.097 0067 0046 0032 0022 0015 0011 0.008 0.005 0004 0003 0.002 0001 0001 0001 0000 0000 0000 0000 0000 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1859 1833 1808 1783 1759 1736 1713 1690 1668 1647 1626 1.605 1585 1.566 1547 1528 1509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2402 2.361 2.322 2.283 2246 2.210 2174 2.140 2106 2.074 2.042 2011 1981 1952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3102 3.037 2.974 2.914 2.855 2798 2743 2690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.1993.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 16 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 6.002 5786 5.582 5.389 5.206 5,033 4.868 4712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 7.435 7108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 10 8.111 7722 7.360 7024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 8.760 8.306 7887 7.499 71396.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 12 9.385 8.863 8.384 7.943 7.536 71616.814 6.492 6.194 5.918 5.660 5.421 5197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8.853 8.358 7.904 7.487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7606 7191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 11.652 10.838 10.106 9.447 8.851 8.313 7824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4730 4.536 4.357 4.189 4.033 3.887 12.166 11.274 10.477 9.763 9.122 8,544 8.022 75497120 6729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 12.659 11.690 10.828 10.0599.372 8.756 8.201 7702 7250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7025 6.623 6.259 5.929 5.628 5.353 5101 4.870 4.657 4.460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7645 7170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7.283 6.835 6.434 6.073 5746 5.451 5.182 4.937 4.713 4.507 4.318 4143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4520 4.328 4151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7984 7441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7003 6.566 6.177 5.829 5517 5.235 4.979 4.746 4.534 4.339 4160 3.995 40 19.793 17159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 The management of L Corporation is considering a project that would require an initial investment of $54,000. No other cash outflows would be required. The present value of the cash inflows would be $81,830. The profitability index of the project is closest to (Ignore income taxes.): 800-21:46 1.52 0.34 0.52 0.48 ABC Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $20,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. The company requires a minimum pretax return of 9% on all investment projects. (gnore income taxes.) (8 00:20:46 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $9,665 O $(95,000) O $(745) $(16,092)