Windhoek Mines, Ltd 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 the mine.

Cost of new equipment and timbers $275,000

Working capital required $100,000

Annual Net Cash Receipts $120,000

Cost to construct new roads in 3 years $ 40,000

Salvage value of equipment in 4 years $ 65,000

The deposit would be exhausted after four years at which time the working capital could be released to be used elsewhere. The companys required rate of return is 20%.

What is the net present value of the mining project?