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Windhoek Mines, Ltd. of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on land to which the company has mineral rights. An

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Windhoek Mines, Ltd. of Namibia, is contemplating the purchase of equipment to exploita 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 rows 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 $430,000 $ 215,000 $ 150,000 $ 63,000 $ 88,000 "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 Ext 138-1 and Exhibit:13B-2. to determine the appropriate discount factors) using tables. Required: a. What is the net present value of the proposed mining project? 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 antworto the nearest whole dollar amount.) Nettent value Required B

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