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:

$*$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

$18\%.$

Required:

a$.$ What is the net present value of the proposed mining project?

b$.$ Should the project be accepted?