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 Working capital required Annual net cash receipts Cost to construct new roads in three years. 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 14B-1 and Exhibit 14B-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 148-1 Present Value of $1;1(1+r)n. Periods 4% 5% 1 0.962 6% 0.952 0.943 0.935 7% 2 0.925 0.907 0.890 0.873 8% 0.926 0.857 9% 10% 11% 3 0.889 0.864 0.840 0.816 4 0855 0823 0.792 0.763 5 0.822 6 0.794 0.735 0.713 0.681 0.666 0.630 7 9 10 11 0.676 0.614 0.558 0.508 0.463 0422 0.650 0.585 0.527 0475 0.429 0.388 0.386 0.350 12 0.625 0.231 13 0.601 0.204 14 0.181 15 0.183 0.160 16 17 18 0494 0.416 0.350 | 0.296 19 0475 0.250 0396 0331 0.277 0.232 0.212 0.194 20 21 22 23 0.406 0.326 | 0.262 24 0.197 0.158 25 26 0.361 27 0.347 0.098 28 29 0.321 0.243 0.185 30 40 0.308 0.208 0.142 0.097 0.067 0.333 0.255 0.196 0.150 0.141 0231 0.174 0.131 0.090 0.008 0.005 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 0.840 0.833 0826 0.820 0813 0.806 0.800 0.842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0551 0.537 0.524 0.512 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0467 0451 0.437 0423 0.410 0.784 0.747 0.650 0.621 0.593 0.567 0.543 0.519 0497 0476 0.456 0328 0437 0419 0.402 0.386 0.370 0.355 0.341 0.790 0.319 0.303 0.289 0.275 0.262 0.335 0.746 0.705 0.596 0.564 0.535 0.507 0.450 0.456 0432 0410 0.390 0.370 0.352 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0434 0.404 0.376 0.351 0327 0.305 0285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.194 0.180 0.703 0.284 0.645 0.167 0.155 0.144 0.134 0.592 0544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.263 0.243 0.225 0.209 0.137 0.126 | 0.116 | 0.107 0.352 0.322 0.295 0.270 0.247 0.227 0208 0.191 0.176 0.162 0.149 0317 | 0.287 0.261 0237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.168 0.092 0.083 0.076 0.069 0.187 0557 0497 0.444 0.397 0356 0319 0.286 0.257 0.208 0.152 0.137 | 0.124 0.112 0.102 0.084 0.068 0.061 0.075 0.055 0.116 0.104 0.093 0.530 0.469 0415 0.368 0.326 0.290 0.258 0.229 0.182 0.163 0.145 0.069 0.099 0.088 0.078 0.062 0.055 0.049 0044 0.577 0.505 0442 0.388 | 0.340 0.299 0.263 0.232 0.205 0.035 0.084 0.140 0.123 0.108 0.074 0.065 0.057 0.051 0.045 0.040 0.555 0.481 0417 0362 0.315 0.275 0.239 0.209 0.123 0.107 0071 0093 0.036 0.032 0.028 0.062 0.081 0.054 0.047 0.042 0.163 0.141 0534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.069 0.060 0.052 0.045 0.039 0.034 0.146 0.125 0.108 0.093 0.080 0.030 0.026 0.023 0513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.032 0.028 0.044 0.038 0.018 0.024 0.021 0.180 0.153 0.130 0.111 10095 0.081 0.069 0.059 0.051 0,098 0083 0070 0.051 0.060 0.116 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.164 0.138 0.051 0.037 0.043 0016 0.014 10012 0.019 0.149 0.124 0.104 0.087 0.073 0.061 0.031 0.026 0.022 0.456 0377 0312 0258 0.215 0.178 0.013 0.031 0.026 0.022 0.018 0.015 0011 0.009 0.439 0359 0.294 0.242 0.199 0.077 0.064 0.053 0.044 0.037 0.164 0.112 0.093 0.135 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.123 0.101 0.083 0.068 0056 0.046 0.038 0422 0342 0.278 0.226 0.184 0.150 0.015 0.012 0.010 0.009 0.007 0.006 0.074 0.049 0.040 0.033 0.027 0.022 0.018) 0.060 0.211 0.170 0.138 0.112 0.091 0.015. 0.013 0.010 0.008 0.007 0.005 0.043 0.035 0028 0.023 0.019 0.006 0066 0.053 0.390 0.310 0.247 0.126 0.102 0.082 0.005 0.004 0.074 0.059 0.047 0.038 0.030 0.024 0.020 | 0.016 0.013 0.010 0.009 0.007 0.006 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.007 0.006 0.005 0.004 0.003 0.009 0.026 0.021 0017 0014 0.011 0.042 0.033 0.053 0.106 0.281 0.084 0.066 0.220 0.172 0.135 0.002 0.005 0.004 0.003 0.009 0.007 0.018 0.006 0.014 0.011 0.047 0.029 0.023 0.037 0.060 0.076 0268 0.207 0.161 0.125 0.005 0.004 0.003 0.002 0.002 0.006 0.016 0.012 0.010 0.008 0.020 0.069 0.033 0054 0.042 0.026 0.116 0.002 0.004 0.003 0.002 0.002 0.011 0.022 0017 0.008 0.006 0.005 0.037 0029 0.063 0.048 0.107 0.082 0.026 0020 0.003 0.033 0.075 0057 0044 0.099 0.046 0.032 0.022 0.015 0.011 0.112 0.103 0.094 0.086 0.130 0.160 0.141 0.125 0.111 0.095 0.014 0.015 0012 0.009 0.007 0.005 0.004 0.003 0.002 0.002 0.001 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; 1r[1-1(1+r)n]] Periods 4% $% 6% 1 0.962 0.952 0.943 2 1886 1.859 1833 3 2.775 2.723 2.673 2.624 4 3.630 3.546 3.465 3.387 5 6 7 8 9 10 6418 11 8.760 8.306 7.887 7499 7.139 6.805 12 9.385 8.863 8.384 7.943 7.536 7.161 6.814 13 14 15 16 17 18 19 20 21 22 8.772 23 8.883 24 8.985 25 26 27 28 29 8.650 30 8.055 40 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0870 0862 0855 0847 0.840 0.833 0.826 0.820 0813 0806 0.800 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1566 1547 1528 1.509 1492 1474 1457 1440 2.577 2.531 2487 2.444 2.402 2.361 2.322 2283 2246 2.210 2174 2.140 2.106 2.074 2.042 2011 1981 1952 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2404 2362 4452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 5.242 5076 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 3020 2951 6.002 5.786 5.582 5.389 5.206 5033 4.868 4.712 4564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3,605 3.508 3416 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 4487 4.344 4.207 4,078 3.954 3.837 3.726 3.619 3.518 3.421 3329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4946 4.772 4.607 4451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3:463 8.111 7.722 7.360 7.024 6.710 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 6.495 6.207 5.938 5687 5453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 6.492 | 6.194 5918 5.660 5421 5.197 4988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8.853 8.358 7904 7.487 7.103 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 6982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7191 6811 6462 6.142 5.847 5.575 5324 5.092 4.876 4.675 4,489 4.315 4.153 4001 3359 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 12.166 11 274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4576 4.391 4.219 4.059 3910 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 8.950 13.134 12.085 11.158 10.336 9.604 8.365 7839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.020 4.843 4.635 4.442 4.263 4.097 3.942 13.590 12.462 11470 10.594 9.818 9.129 8.514 7.963 7469 7.025 6.623 6.259 5.929 5.62K 5.353 5.101 4.870 4.657 4460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 | 3.963 5.696 5410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14.451 13.163 12.042 11.061 10.201 9.442 8.176 7.645 7.170 6.743 6.359 6011 8.266 7.718 | 7.230 6.792 6.044 5.723 5.432 5.167 4.925 6.399 4.701 4,499 4.311 4.137 3976 14.857 13.489 12.303 11.272 10.371 | 9.580 6073 6434 5.746 5451 8.348 7.784 7.283 6835 4.343 4.713 4.507 4318 3981 15.247 13.799 12.550 11 469 10.529 9.707 5.182 4937 6.464 6097 8.422 7.843 7330 6.873 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 15.622 14.094 12.783 11.654 10.675 9.823 9.077 6.118 5.783 5.480 5.206 4.956 4.151 8488 7.896 7.372 6.906 6.491 4.728 4.520 4.328 9.161 15.983 14.375 13.003 11 826 10.810 9.929 6514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.348 7.943 7.409 6.935 6534 | 6.152 4.335 5.810 5.502 5.223 4.970 4.739 4528 4.157 3.992 8.602 7.984 7.441 6.961 16.663 14.898 13.406 12.137 11.051 10.116 9.307 6.551 4.337 4.159 3994 8.022 16.984 15.141 13.591 12.278 11.158 10.198 9.370 7.470 6983 6.166 5.820 5.510 5.229 4.975 4.743 4531 7.496 7.003 6.566 6.177 5.829 5517 5.235 4.746 4.534 4.339 4.160 3.995 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 4.760 4.544 | 4347 4.166 3.999 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 2.745 2689 3.988 4979 4997