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Windhoek Mines, Limited, of Namibla, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the compary has mineral inghts.

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Windhoek Mines, Limited, of Namibla, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the compary has mineral inghts. 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: 5, 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 reimvestment eisewhere. The company's required rate of return is 18%. Cilck here to view Exhbit 148-1 and Exhibit 148-2, to determine the approprlate 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. What is the net present value of the proposed mining project? (Enter negative amount with a minus nign. Round your final) answer to the nearest whole dollar amount.) EHIBIT 14B-1 Present Value of $1.1(1+r)n Present Value of an Anneitv of S1 in Arrears: 1r[11(1+r)n ]

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