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 $ 420,000 $ 230,000 $ 165,000* $ 66,000 $ 91,000 *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 capital would be released for reinvestment elsewhere. The company's required rate of return is 18%. Click here to view Exhibit 7B-1 and Exhibit 7B-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 Should the project be accepted? Yes No EXHIBIT 78-1 Present Value of $1: EXHIBIT 78-2 Present Value of an Annuity of $1 in Arrears: [ - ] Periods 4% 5% 4 6% 7 7% 8% % 9% 10% 11% 12% 13% % 14% 15% 16% 17% 18% 19% 20% 21% % % 22% % 23% 24% 25% % 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2. 0.925 0907 0890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0731 0.718 0.706 0.694 0683 0.672 0.661 0650 0640 3 0.889 0.864 0.840 0.816 0.794 0772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0855 0.823 0.792 0.763 0.735 0.708 0.683 0659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0746 0.705 0666 0630 0596 0564 0.535 0507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.3190303 0289 0275 0262 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8 0.731 0677 0.627 0.582 0.540 0.502 0.467 0.434 0404 0376 0351 0.327 0.305 0285 0.266 0.249 0233 0.218 0204 0.191 01790168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.6140558 0.508 0.463 0.422 0.386 0352 0.322 0.295 0270 0247 0.227 0208 0.191 0176 0.162 0.149 0137 0.126 0.116 0107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.37 0.287 0.261 0.237 0.215 0.1950.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0319 0286 0257 0231 0208 0.187 0168 0152 0137 0124 01120102 0.092 0083 0.076 0.069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 14 0.577 0.505 0.442 0388 0340 0.299 0.263 0232 0205 0181 0160 0141 01250111 0099 0.088 0078 0069 0.062 0.055 0049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0239 0209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0292 0252 0218 0.188 0163 0.141 0123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0.31 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 18 0.494 0.416 0.350 0296 0.250 0.212 0180 0153 0130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0032 0.028 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0232 0.194 0.164 0138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.20 0.017 0.014 20 0.456 0377 0312 0258 02150178 0149 0124 0104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0022 0.019 0.016 0.014 0.012 21 0.439 0359 0294 0242 0.199 0164 0135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0015 0.013 0.01 0.009 22 0.422 0.342 0.278 0.226 0.184 0150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0022 0.018 0.015 0.013 0.011 0.009 0.007 23 0.406 0326 0.262 0.211 01700138 0.112 0.091 0.074 0.060 0.049 0040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 24 0.390 0.310 0247 0197 0158 0.126 0102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0010 0.008 0.007 0.006 0.005 25 0.375 0295 0 233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0024 0.020 0.016 0.013 0010 0.009 0.007 0.006 0.005 0.004 26 0.361 0281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 27 03470268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0023 0018 0.014 0.011 0009 0.007 0.006 0005 0.004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 29 0321 0243 0185 0141 0107 0082 0.063 0.048 0.037 0.029 0022 0.01 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.025 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0208 0142 0097 0067 0046 0032 0.022 0.01 0.011 0008 0005 0004 0003 0002 0001 0001 0001 0000 0000 0000 0000 0.000 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% % 20% 21% 22% 23% % 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2. 1886 1859 1833 1808 1783 1759 1736 1713 1690 1668 1690 1668 1647 1626 1605 1585 1.566 1547 1528 1509 1.492 1.474 1.457 1440 3 2.775 2.723 2.673 2624 2.577 2531 2.487 2.444 2.402 2361 2322 2.283 2246 2210 2174 2.140 2.106 2074 2042 2.011 2.074 2042 2011 1981 1952 4 3630 3.546 3.465 3.387 3312 3.240 3170 3102 3037 2 974 2914 2855 2798 2743 2690 2639 2.589 2540 2494 2448 2404 2362 5 4.452 43294212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3127 3.058 2.991 2926 2864 2.803 2745 2689 6 5.242 5076 4917 4767 4623 4486 4355 4231 4111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3245 3167 3.092 3.020 2.951 7 6.0025.786 5.582 5389 5.206 5.033 4868 4712 4.564 4.423 4288 4160 4039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6210 5971 5747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9 7435 7108 6.802 6515 6 247 5.995 5.995 5759 5537 5328 5132 4946 4772 4607 4.451 4303 4163 4031 3905 3786 3.673 3566 3.463 10 8111 7722 7350 7024 6.710 6.418 6145 5.889 5.650 5.426 5216 5.019 4.833 4659 4.494 4339 4192 4.054 3.923 3.799 3.682 3571 11 8.760 8.306 7887 7.499 7139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4836 4656 4486 4327 4177 4.035 3.902 3.776 3656 12 9.385 8.863 8.384 7943 7536 7161 6.814 6.492 6.1945.918 5660 5.421 5.197 4.988 4.793 4.611 4.439 4278 4127 3.985 3.851 3.725 13 9.986 9394 8.853 8.358 7904 7487 7103 6.750 6.424 6122 5.842 5.583 5.342 5.118 4.910 4715 4533 4.362 4203 4.053 3.912 3780 14 10.563 9.899 9.295 8745 8.244 7786 73676.982 6.628 6302 6.002 5.724 5.468 5229 5008 4802 4611 4432 4265 4.108 4.432 4265 4108 3.962 3.824 15 11.118 10 380 9212 9.108 8.559 8,061 7606 7191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4876 4.675 4.489 4315 4153 4001 3.859 16 11652 10 838 10.106 9447 8851 8.313 7824 7379 6974 6604 6.265 5954 5668 5.405 51624938 4730 4.536 4357 4189 4033 3.887 17 12.166 11.274 10.477 9763 9.122 8.544 8.022 75497120 6729 6.373 6.047 5749 5.475 5.222 4.990 4775 4.576 4391 4219 4.059 3.910 18 12659 11690 10 828 10.059 9.372 8756 8 201 7702 7250 6.840 6.467 6128 5.818 5.534 5.2735033 48124608 4.419 4243 4080 3.928 19 13.134 12.085 11158 10.336 9.604 8950 8.950 8.365 7839 7366 6.938 6.550 6.198 5.877 5584 5.316 5.070 4.843 4.635 4.442 4263 4,097 3.942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7963 7.469 7025 6.623 6.259 5.929 5.628 5.353 5101 4.870 4657 4.460 4279 4.110 3.954 21 14.029 12 821 11764 10.836 10.017 9292 8649 8075 7562 7102 6687 6312 5.973 5665 5384 5127 4891 4675 4.476 4292 4121 3.963 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7645 7170 6.743 6.359 6.011 5.696 5.410 5149 4.909 4.690 4.488 4302 4130 3.970 23 14.857 13.489 12.303 11.272 10.371 9.580 8883 8266 7718 7230 6792 6.399 6.044 5723 5.432 5167 4925 4703 4499 4311 4137 3.976 24 15 247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7283 6.835 6.434 6.073 5746 5.451 5.182 4.937 4.713 4507 4318 4143 3.981 25 15.622 14.094 12783 11654 10.675 9.8239.077 8.422 78437330 9.077 8.422 78437330 6.873 6.464 6.097 5.766 5.467 5195 4948 4721 4.514 4323 4147 3.985 26 15.983 14375 13.003 11.826 10.810 9.929 9161 8.488 7896 7372 6.906 6.491 6.118 5783 5.480 5 206 4956 4728 4520 4328 4151 3988 27 16.330 14643 13.211 11.987 10.935 10.027 9.237 8.548 7943 7409 11.987 10.935 10.027 9237 8.548 7943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4734 4.524 4332 4.154 3.990 28 16.663 14.898 13.406 12137 11051 10.116 9 307 8602 7984 7441 6.961 6.534 6.152 5810 5.502 5.223 4970 47394528 4335 4157 3.992 29 16.984 15.141 13.591 12 278 11.158 13.591 12 278 11158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4531 4337 4.159 3.994 30 17.292 15.372 13.765 12.409 11 258 10 274 9.427 8.694 8055 7496 7003 6.566 6177 5829 5517 5235 4979 4746 4534 4339 4160 3.995 40 19.793 17159 15.046 13 332 11.925 10.757 9779 8.951 8.244 7634 7105 6.642 6233 5871 5548 5.258 4.997 4760 4544 4347 4.166 3.999