VIEW DATA 13 Marge Cell HOME Tab Stop S BI Overline Font Size Font Name - B Copy Paste D CLICK HERE TO SAVE YOUR WORK PV Factor = 1/((1+67"ye) SIRRI B Windhoek Mines, Ltd.. of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on and to como engineering and cost analysis has been made, and it is expected that the following cash flows would be associated within 1 EIRR(arrayvals, estimate) $500,000 $125,000 $195,000 $56,000 $81,000 22% =PMT(rate, nper,pval, [fval) type) 3 5 Cost of equipment required and timbers Working capital investment required Annual net cash inflows* Cost to construct new roads in three years Salvage value of equipment in four years Company's required rate of return 7 8 9 10 *Receipts from sales of ore, less out-of pocket costs for salaries, utilities, insurance, etc. 11 12 The mineral deposit will be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere 13 14 Required: a. Determine the net present value of the proposed mining project. Ignore income taxes. (12 marks) (Any cash outflows should be indicated by a minus sign.) Yo 15 may not need to use all the highlighted cells. 11 End 110 m Year Home 19 Debul 8 2 16 7 & New 17 16 A NPV V1b > % HERE TO SAVE YOUR WORK Required: Determine the net present value of the proposed mining project. Ignore Income taxes. (12 markah may not need to use all the highlighted cells. Year 3 21 22 23 24 25 26 27 #NUM! 28 Wome 19 D b. What is the internal rate of return of the project? 29 471 & 30 Internal rate of return 1 ? New 31 32 NPV V1b SA % 5 $ T