Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to explolt 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 $ 420,000 Working capital required $ 230,000 Annual net cash receipts $ 165,00 cost to construct new roads in year three $ 66,000 Salvage value of equipment in four years $ 91,000 "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 128-1 and Exhibit 28:2, 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? EXHIRIT 121.1 Preset Value of 51:1(1+r) 59 Periods 1 2 3 4 5 LOVO 9 2 N 6 WOCO TELO LUSO LUSSO NOVO 49 54 79 8 95 105 119 12 135 1495 15 16 175 154 19 20 22 25 245 255 0.9620952043 09350 926 09170809 OSON 0.893OSS O720X70 0342 OSS. 084740X10080026 0220 0.519 ONS 0.00 0925 09070890 0.70X570X4208260X120.797 0.7830709 07560.7430.731 0.7180.706061406067204661 06500 640 DX90X640840 0.816 0.794 0.772 0.750 0.731 0.712 0.093 0675065N0501052409 0.593 057905640551 0.37 0.5240512 OXSS 020.79202760.75 0.7030683065006360673059205720552030516 0.499 042 046704451 0.437 04230 410 0X220.784 0.7470713061 0.6502062059 10.5670.54051904970,4760456 047 0419 0 402D00700355 01 02 0.790 0.746 0050656 0.63005966564050505070240304560432 0410000370 01520150319100029 0.275 0.262 0.7600.7110.665 0.623 0583 0547051104N2045204250 40003370054013303140.2960279 0.2610 2490 235 02220210 0.231 06770627 058205400 502 04670414 0.404 0376 0351 032701150285 0.20602490213 2000 1910 170 0165 070306450992 05440.500 0.400 0.424 0.391 0.361 0.24 0263 0.24 0.2350 2090194 0.18 0.167 0.155 0.144014 067606149558 SON 0.463 042206 020120.29502700347 0227020 0.1910.176 0.162 0.149 01 0.125 0.116 0.107 0650 55 0475 029 ORDE 0701 0.2170 2150195 0.17 0.162 0.140 012101121030OONS 0.62503570492 0444 0.0003199 02860257021 0207OTON 0.152017 1 O 0.102 0092 00 00150 OSOI033004000415002602900250290.240.160.15 0.110 OT1160.101 00900025 OD0061 0.055 0.577 10 5050442 OR 10.200 0.2610220011 01600.14 0.125 011000 0.06900620055 00490044 0.55504N041201020150275020209OINT 0.100 1201050050.084 0074 DOMS 00570051 00000000015 0334 045 0.940 0292 02520211000110010100ODRI GOOD 0044 004700001600130028 DOO ODOO 001400000200021 0401 104160150020602500212 00 0.15301100000000051 00000000000240021 00 0475 039030222022090.10001 0.116 OINOON0020OOOOST 000 0017 0031 0027 003 0.0300000014 0456 047703120250215 0.17 06010000000000022 01001 OD OD 0430039902041020190164001112007700055 OCH40037 0031 002600OIR 001500001000 044220342 0278 0326018401S001230101 OOR30068 000600160030012 00260022 0.01 001500 OD ONOTO 04060-1260202 0211 0.1 0.13 01120791 0.074 ODOODWOO 0023070220032001 0.3900 3100 247 0.19 0.15 0.126 103 0.020066 0.053 004 003 0020023 0.0190015 0.0100100007 0006 OTOS 0973 0.29302330 KG 0,146 0.116 00920.074 0062 0035 000 002402000160000010 0.00 0.007 0361 021 020 0172 01:15 010640066530042 0030026 OD 0017000011 000005 0.3470260207 0.101 0.125 000 0.0760.000 0017 0023 0.018 0014 0011 02333 0.255 0.196 0050 0,033 0026 0.020 00160012 ODIO ODOS 0.006 0.004 0000 00022 0321 0.243 0.15 0.141 0 107 0082006 ODS 0037002900220017 0014 0011 ODON 0.006 0.005 00014 0001 0.002 0.002 0.002 0.08 0.21 0.174 0131 0099050057001 0031100260020001500120009000700050004 0.003 00000000002 0.001 000120097 0.062006001200220DIS 0.011 000 0.005 0.00 0.00 0.00 0.001 000 000 0.000 0.000 0.000 TO WOO 1600 MOD TID OLIDOLITO OZDZIO TEODORICO 10 11 12 13 14 15 16 17 IN 19 20 21 22 223 24 25 26 27 28 29 Jo 40 TOOL TOTOO TOO Z 9000 TOMTO 0100 CIGOISTO OSUD TOTO SOOO 90010 EXTO DO TOTO00000000 OCOO LENTOKO 2000 OCTO S000 LHO CHTO JOOG009110 OSTO OOTO0000 EXHIBIT 11.2 Present Value of an Anwalty of S1 in Arrears. It 15 59 58 SIL 581 OOO LO SSS 1 Periods 1 2 3 4 5 6 SWE UNE L. 9 6 ILSE ISE 10 11 12 13 14 15 16 17 IN 19 20 21 79 104 115 125 135 154 165 175 19% 205 215 214 344 259 0.0020952094) 0935 0936 091709090901 0.893 080770870086208550X470400032608200.81306010 1.861 1831 SOS 173 175 176 17769 1668 1647 1626 1605 15851566154715281509149214701457 1440 2.7752.723272614257723312457 2444 2.40222612332222 2246 2210 2110 2140 2100 2014 2012 2011 1951 1952 1610 3540 3312240 0.102303729742914227927432690 26 19259 250 2494244824042362 4.45243244212410039933.8903.791 38063605 351743.274.1993.12710382.991 2.926362032.745 2689 352423076491741767 4.623 44864.355 412314.111 3.998393.784368535893491410032633453167 3.092051 6002 5.786 55823.359 3.206 5.031 4.868 4.7124564 4423 428 4100 4019 3.9223.123.70% 3.605 3SO3416032732423.161 6.733 6 466 21059715747505539315514649684.7994639 4 457 44444.2074078 3954383717263619 35518 34213329 7452.108 6202 65156247399535,7595.537 3:3263112494647724.607 4451 16.04.1614031 399053616733566 3.461 811122 70246710 64186.145588956505.426 592165019 420 4659 4494 43194192 405439213.29936523571 8.760830678877499 7.1396 805 6.495 6.207356754535214029 436 4.656 4.4864 1274.1774035302 3.7763656 9321847.9675367.16116,81464926.19059185.660 SA52197493 4.793 461 44394278 27985 3.725 9.9369.3945 815790174872 1036.750601225823383534211891041545041424203140559123780 10.5639.899 9.295.74582447.7867.367 69N26.628 6.102 600252434685229 SOON 4024611 4.432 43654108302324 1111 10:38097129.1068559 8.06112.606 12.1916.11 6.46261425537524 5.092 4576 4675 448943154153 4001 3.859 11652 10 10 100 94478.313 7824226974600462655954566831405570249547043164157.1894017 12:166 1127410477979.122 544 1.02225092067296373604715709267535222 4904.775 4576 49142194059 31910 12.659 11 600 10.2 10.059921727568.201 7.702 7.250 66 676.123.NIR 5.543271503412 4.50 441940 3.928 13.13412051103369600395019783923666165506.1935577558151015070484346152442426340971.942 13590 1262 11470 10.5049818 9.129 8514796 749702566262595929 56245.353 5101470453374042794.11004 14029 12.8210170410311001719.292 8.698.07575427 1026.687 631125971386553841274.691 4675 14764292 4.12.1961 14.451 13 16 1201211061102019 442877217676457,170 6.74363596015696541031499404458 4.30 41303970 1437 4912112721037193 32612718122106.7926.1996044 587234216749253470344993311 1373.976 15.247 12799122550110010599.707 ROBAR 7.745 6434 6 US57451214017473907441 15621123650 110/6759.823907744274373306873646467546 11591422902.00122610.1099906172690664015735450320015692520 4.1919 16:3014642121119710051002719227855 704179603565146165542525495 1714534412 4150 31990 16.66 1498 130012012110110 1169 2070 7798474416961 0.125803502 3200473945425 41571092 655161065205510329149751 401 151996 1729215216240912381107094276965749670036.566611320531752354070471643344319 100 23 24 25 26 27 SORTERISTILIZAMO 56135 NE HSO SES 29 189KMA TOROS COLEGAS DZILLOS LISO12690 OS 40 666 WINSTOSSESSERINSKIH SOUTSOLGEN SIECIO 626
