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. The company estimated the following cash flows related to 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$*$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 $14$B$-1$ and Exhibit $14$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?

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Required B

What is the net present value of the proposed mining project?

Note: Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.

Net present value