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 and timbers Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in four years $ 340,000 $ 205,000 $ 140,000 $ 61,000 $ 86,000 "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 ce ital would be released for reinvestment elsewhere. The company's required rate of return is 18% Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate 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. Required A Required B What is the net present value of the proposed mining project? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present Value (55,393) Required Required B > HIBIT 120-1 Present Value of State eriods 5% 6% 7 8% 9% 10% 115 12% 139 14% 15 16% 17% 180 19% 20% 29 22% 23% 24% 25 1 0962 0952 0943 0935 0925 0917 09090901 0893 0885 08770870 0.862 0855 0877 0840083308260820 0813 08060800 2 0,925 0907 08900873 0857 0842 0.826 0812 0797 0783 0769 0756 0743 0731 0718 07060694 0683 0672 0661 0650 0640 3 0889 0864 084008160794 0772 0751 0731 07120693 06750658 0641 0624 0.609 0593 0579 0564 0551 0537 05240512 4 0.855 0.823 0792 0763 0735 0708 0683 0659 0636 06130592 0572 0552 0534 05160499 0482 0467 0.451 0437 0423 0410 5 0822 0784 0742 0713 0681 0650 0621 0593 0567 0543 0519 0497 0476 0.456 0437 0419 0402 0386 0370 0355 03410328 6 0790 0.746 0705 0666 0630 05960564 0535 0507 0480 0.456 0432 0410 0390 03700352 0335 0319 0.303 0289 0275 0262 7 0.760 0711 0665 0.623 0583 0547 0513 0482 0.452 0425 0.400 0.376 0354 0333 0314 0296 0279 0263 0249 0235 0222 0210 8 0731 06770627 0.582 0540 0502 0467 0434 0404 0376 0351 0327 0305 0285 02660249 0233 0218 02040191 01790168 9 07030645 0592 0544 0500 0460 0424 0.391 0361 0333 0308 0.284 0263 0243 0225 0209 0.194 0180 01670155 0.144 0134 10 0676 064 0558 0508 0463 0422 0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0162 0149 0137 0126 0116 0107 11 0650 0585 05270475 0429 0388 0350 0317 0287 0261 0237 0.215 01950178 0162 0148 0135 0123 01120103 0094 0086 12 0625 0557 0497 0.444 0397 0356 0319 0286 0257 0231 0208 0187 0168 0152 0137 0124 01120102 0092 0083 0076 0069 13 0601 0530 0469 0415 0.368 0326 0290 0258 0229 0204 0182 0163 01450130 0116 0104 0.093 0.084 0.075 0068 0061 0055 14 0577 0505 0442 0388 0340 0299 0263 0232 02050181 0160 0141 012501110099 0088 0078 0069 0062 0055 0049 0044 15 0555 0481 0477 0362 0315 0275 0239 0209 0183 016001400123 0108 0095 0084 0074 0065 0057 0051 0045 0040 0035 16 0534 0458 0394 0339 0292 0252 021801880163 01410123 0107 0093 0081 00710062 0054 0047 0042 0036 0032 0028 17 0513 0435 0371 0317 0270 0231 0198 0170 0146 01250108 0093 0.0800069 00600052 0045 0039 0034 0030 0026 0023 18 0494 0416 0350 0296 0 250 0212 01800153 0130 0111 0095 0081 0069 0059 0051 0044 0038 0032 0.028 0024 0.021 0.018 19 0475 0396 0331 027 0232 0194 0164 0138 0116 0098 0083 007000600051 0043 0037 0031 0.027 0023 0020 002 0014 20 0456 0377 0312 0258 0215 0178 0149 0124 0104 0.087 0073 0.061 0051 0013 0037 0031 0026 00220019 0016, 004 0012 21 0.439 0359 0.294 0242 0.199 0164 0135 0112 0.093 0077 0064 0053 004 0037 0031 0026 00220018 001500130011 0009 22 0.422 0342 0278 0226 0184 0150 0123 0101 0083 0068 0056 0046 0038 0032 0026 0.022 0.018 00150013 0011 0009 0007 23 0406 0.326 0262 021101700138 01120091 0074 0060 0049 0.0400033 0027 0022 0018 0015 0012 0010 0009 0007 0006 24 0.390 0310 0247 0197 0158 01260102 0082 0066 0053 0043 0035 0028 0023 0019 0.015 0.0130010 0008 0007 0006 0005 25 0375 0295 023 01840146 0116 0092 0074 0059 0047 0038 0030 0024 0020 0.01600000100009 00070006 0005 0004 26 0361 0281 0220 0172 01350106 0084 0.066 0053 0042 0033 00260021 0012 0014 0011 0009 0002 0006 0005 0004 0003 27 0347 0268 0207 0161 0125 0098 00760060 0047 0037 0029 0023 0.018 0010011 0009 0007 0006 0005 0004 0.003 0.002 28 0933 6 2 0 1 0 0 150 0 1 0 0 0 0 0 0 0 0 054 0 042 0 033 0 026 0020 0 016 ( 012 000 0 008 0000 0 000 0004 0 000 0002 0002 29 0321 0243 0185 011 0107 0082 0063 0048 0037 0029 0022 0017004 0011 0008 0006 0005 0004 0.003 0002 0.002 0002 30 0308 0231 0174 001 0099 0075 0057 004 0033 0026 0.020 0015 0012 0009 000700050004 0000 0003 0002 0002 0001 40 0208 042 0097 0067 0046 0032 0022 0015 on 0008 0005 0004 0003 0002 0.001 0.001 0001 0000 0000 0000 0000 0000 12 EXHIBIT 128-2 Present Value of an Annuity of S1 in Arrears: Periods 43 5 6% 8% 98 WO 12% 139 144 158 16% 17% 189 199 20% 21% 22% 23 24 25 1 0.962 0952 0943 0935 0926 0917 0.9090901 0893 0885 0877 08700862 0855 0847 084008330826 0820 0813 08060800 2 1886 1859 1833 1808 1783 1759 1736 1713 1690 1668 1647 1626 1605 15851566 1547 1528 15091492 1474 1457 1440 3 2775 2.723 2673 2624 2577 2531 2487 2444 2402 2361 2322 2283 2246 2210 2174 2140 2106 2074 2012 2011 1981 1952 4 3630 354634653387 3312 3.240 31703102 3037 29742914 2855 2798 2743 2690 2639 2589 2540 2494 2448 2404 2362 5 4452 4329 4212 4100 3993 3890 391 3696 3605 3517 3.433 3352 3274 3199 3127 3058 2991 2926 2864 2803 2745 2689 6 5242 5076 4917 4767 4623 4486 4355 4231 4.111 3998 3889 3784 3685 3589 3498 3410 3326 3245 3167 3092 3020 2951 2 60025786 5582 53895 206 5033 4868 4712 4564 4423 4288 4160 4039 3922 3812 37063 605 3508 3416 3327 3242 3161 8 6733 6.463 6210 5971 5747 5535 5335 516 4968 4799 46394487 43444207 4078 3954 3837 3726 3619 3518 3421 3329 9 7435 2108 6.B02 6515 6247 5995525537 5.328 5132 4946 47 4607 4451 4303 4163 4031 39053786 3673 3566 3463 10 8.111 7722 7360 7024 6.750 6418 6145 5889 5650 5426 5216 5019 4833 4659 4494 4339 4192 4054 3.9233 799 3682 3571 11 8760 8 306 78877499 7139 6 805 6495 6 207 5938 5687 5453 5234 5029 48364656 44864327 41774035 3902 37763656 12 9385 8863 8384 723 7536 2161 6.814 6 492 6194 5918 5660 5421 5197 4988 4793 4611 4439 4278 4127 3985 3851 3725 13 9.986 9394 885383587904 748777036250 6.424 6122 58425583 5342 5.1184910 47154533 4362 4203 4053 39123780 14 10.563 989992958745 824 27867367 69826628 6302 6.002 57245 468 5229 5008 4 802 4611 4132 42654108 3962 2824 15 11118 103809712 9108 8559 8061 7606 7191 68116462 6142 58475575 5324 5.092 4876 4675 4489 4315415340013850 16 11652 10838 10 978851 8.313 7824 73796.9746604 6265 5954 5668 5 405 51624938 47304536 4357 4189 4033 3887 lo 12 166 11274 10471 9763 9122 8544 022 7549 2120 67296373 6042 5749 5475 5222 4990 475 4576 4291 4219 4059 3910 18 12659 1690 108281005993728756 8201 2202 22506840 6 467 6124 58185534 5273 5033 48124608 4419 4243 LORO 3928 19 13.134 2085 11158 10336 9604 8950 8365 78397366 6938 6550 6198 5877 5584 5316 5070 4843 4635 4442 4263 4097 3942 te 20 3590 12.462 11470 10 594 9818 91298517963 7469 7025 6623 6 259 5929 5628 5353 51014870 4657 446042794110 3954 23 M029 12821 11764 1083610017 9292 8649 8075 7562 7102 6687 6312 5973 5665 5384 51274891 4675 4476 4292 41213953 22 14.451 13167 12042 11061 10 201 9442 872 81767645 2170 67436359 60115696 5410 519 4.909 4690 4488 4302 41303970 23 1857 3489 12 303 1127210371 9580 883 8266 7718 7230 6792 6 399 6044 5723 5432 5167 4925 47034499 4311 4373976 24 5247 13 199 2550 1146910529 9707 895 8348 7784 7283 6835 6434 6073 5746 5.451 51824937 4 713 4507 4318 41433981 25 15622 1409 12783 1654 10675982390778422784373306873 64646097 5766 5.467 51954948 472145144323 4173985 26 15983 375 1003 11826 10810 9.929 9161 848 7896 7372 6.906 6491 6118 5783 54805 206 4956472845204328 4151 3988 27 16 330 M643 1211 11987 10.935 10027 9237 8548 7943 2409 6 935 65M 6136 57985492 52154964 47344524 4332 4154 3.990 lo 28 16663 1898 13.406 1207 1105110116 9.307 8.602 2984 7441 6961 6534 6152 5.810 5502 5223 4970 47394528 43354157 3992 29 16.984 1514113591 12.278 11158 10198 9370 8650 8022 7470 6983 6551 6166 5820 5510 5229 4975 473 4531 4337 4159 3994 ticke 30 17292 15372 6765 2409 11258 10274 9.427 8694 8055 7496 7003 6.566 6177 5.829 557 5235 49794745 4534 4279 41603995 40 19793 1715915046 13332 119251075797798951 8244 7634 71056642 6233 5871 5548 5 258 4997476045444347 4166 999 PREST