Windhoek Mines Ltd. of Namibia is contemplating the purchase of equipment to exploit a mineral deposit located 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 floWE would be Associated with opening and operating a mine in the area: Cost of new equipment and timbers R200,500 Working capital required 75,000 Net annual cash receipts 90,000 Cost to construct new roads in three years 30,000 Salvage value of equipment in four years 48,750 "Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance and so forth (The currency in Namibia is the rand, here denoted by R.) It is estimated that 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 discount rate is 20%. Required: Determine the NPV of the proposed mining project. Should the project be accepted? Explain.