{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-14T00:04:23-04:00", "answer_date": "2024-09-14 00:04:23", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10719944", "url": "\/study-help\/questions\/windhoek-mines-limited-of-namibia-is-contemplating-the-purchase-of-10719944", "question_creation_date_js": "2024-09-14T00:04:23-04:00", "question_creation_date": "Sep 14, 2024 12:04 AM", "meta_title": "[Solved] Windhoek Mines, Limited, of Namibia, is c | SolutionInn", "meta_description": "Answer of - Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land t | SolutionInn", "meta_keywords": "windhoek,mines,limited,namibia,contemplating,purchase,equipment,exploit,mineral,deposit,land,company", "question_title_h1": "Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights.", "question_title": "Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to", "question_title_for_js_snippet": "Windhoek Mines, Limited, 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 $ 3 5 0 , 0 0 0 Working capital required $ 1 0 5 , 0 0 0 Annual net cash receipts $ 1 3 5 , 0 0 0 Cost to construct new roads in three years $ 4 1 , 0 0 0 Salvage value of equipment in four years $ 6 6 , 0 0 0 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 1 8 Click here to view Exhibit 1 2 B 1 and Exhibit 1 2 B 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 ", "question_description": "
Windhoek Mines, Limited, 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:<\/span><\/div>
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Cost of new equipment and timbers $ <\/span>3<\/mn>5<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> <\/div>
Working capital required $ <\/span>1<\/mn>0<\/mn>5<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> <\/div>
Annual net cash receipts $ <\/span>1<\/mn>3<\/mn>5<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>*<\/mi><\/mrow><\/math> <\/div>
Cost to construct new roads in three years $ <\/span>4<\/mn>1<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> <\/div>
Salvage value of equipment in four years $ <\/span>6<\/mn>6<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> <\/div>
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*<\/mi><\/mrow><\/math>Receipts from sales of ore, less out<\/span>-<\/mo><\/mrow><\/math>of<\/span>-<\/mo><\/mrow><\/math>pocket costs for salaries, utilities, insurance, and so forth.<\/span> <\/div>
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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<\/span><\/mi><\/mrow><\/math>s required rate of return is <\/span>1<\/mn>8<\/mn>%<\/mo>.<\/mo><\/mrow><\/math> <\/div>
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Click here to view Exhibit <\/span>1<\/mn>2<\/mn><\/mrow><\/math>B<\/span>-<\/mo>1<\/mn><\/mrow><\/math> and Exhibit <\/span>1<\/mn>2<\/mn><\/mrow><\/math>B<\/span>-<\/mo>2<\/mn>,<\/mo><\/mrow><\/math> to determine the appropriate discount factor<\/span>(<\/mi><\/mrow><\/math>s<\/span>)<\/mi><\/mrow><\/math> using tables.<\/span> <\/div>
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Required:<\/span><\/div>
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a<\/span>.<\/mo><\/mrow><\/math> What is the net present value of the proposed mining project?<\/span> <\/div>
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b<\/span>.<\/mo><\/mrow><\/math> Should the project be accepted?<\/span> <\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-14 00:04:23", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/business-communication-essentials\/identify-specific-approaches-to-corporate-citizenship-lo13-choose-a-company-2008152", "description": "Identify Specific Approaches to Corporate Citizenship (LO1.3) Choose a company and analyze its corporate citizenship measures. In four to five paragraphs, explain the companys major corporate...", "stars": 0 }, { "url": "\/a-company-begins-a-review-of-ordering-policies-or-its", "description": "A company begins a review of ordering policies [or its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item. Demand (D) =64...", "stars": 3 }, { "url": "\/study-help\/questions\/windhoek-mines-limited-of-namibia-is-contemplating-the-purchase-of-10719944", "description": "Windhoek Mines, Limited, 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...", "stars": 3 }, { "url": "\/study-help\/questions\/geraldine-wolfe-is-a-supervisor-at-fantastigifts-she-has-an-6402310", "description": "Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $47,500, paid biweekly, and a garnishment for consumer credit of $455. Assuming that her disposable income is 80 percent...", "stars": 3 }, { "url": "\/study-help\/questions\/q1-the-following-monthly-budgeted-data-are-available-for-the-1009023", "description": "Q1 The following monthly budgeted data are available for the Stark Company: Sales Variable expenses Contribution margin Product A Product B Product C $500,000 $300,000 $900,000 300,000 210,000...", "stars": 3 }, { "url": "\/study-help\/questions\/air-at-80-and-145-psia-flows-into-a-hair-1025816", "description": "Air at 80 and 14.5 psia flows into a hair dryer and is heated by an electrical heating element. Hot air at 176 leaves the dryer through a 2 inch diameter outlet at a volume flow rate of 1.51 ft3\/s...", "stars": 3 }, { "url": "\/study-help\/questions\/how-is-data-analytics-being-used-to-enhance-food-and-1002990", "description": "How is data analytics being used to enhance food and beverage services in the hospitality industry, particularly in fine dining establishments? please provide a citation", "stars": 3 }, { "url": "\/study-help\/questions\/minicase-watch-out-all-retailers-here-comes-amazon-watch-out-1007213", "description": "Mini-Case: Watch Out All Retailers, Here Comes Amazon; Watch Out Amazon, Here Comes Other Competitors Amazon's sales in 2014 were $88.99 billion, an increase of 19.4 percent over 2013. In fact, its...", "stars": 3 }, { "url": "\/study-help\/questions\/in-particular-what-did-dr-balanoff-and-other-researchers-discover-1003456", "description": "In particular What did Dr. Balanoff and other researchers discover about the size of the dinosaur cerebrum in non-bird dinosaurs closely related to birds?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/explain-why-the-director-was-liable-for-breach-of-duty-10719943", "next": "\/study-help\/questions\/ten-year-5-bonds-with-a-500000-face-value-were-10719945" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/windhoek-mines-limited-of-namibia-is-contemplating-the-purchase-of-10719944" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }: "1" } }