Windhoek Mines, Ltd., 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: Cost of new equipment required and timbers Working capital required Annual net cash inflows* Cost to construct new roads in three years Salvage value of equipment in four years $ 470,000 $100,000 $180,000 $ 53,000 $ 78,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, etc. 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 19%. Required: a. Determine the net present value of the proposed mining project. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Any cash outflows should be indicated by a minus sign. Do not round your intermediate calculations.) Answer is complete but not entirely correct. Amount of Present Item Year(s) Cash Value of Flows Cash Flows Cost of equipment required Now $ (470,000) $ (470,000) Working capital required Now $ 100,000) (100,000) Net annual cash receipts 1-4 $ 180,000 474,840 Cost of road construction 3 $ (53,000) (31,429) Salvage value of 4 $ 78,000 38,922 equipment Working capital release 4 $ 100,000 49,900 Net present value $ (37,767)