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 $275.000 100,000 Working capital required $ 120,000 Annual net cash receipts Cost to construct new roads in three years Salvage value of equipment in four years $40,000 $65,000 *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 20%. Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables. Required: a. Determine the net present value of the proposed mining project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s). When you enter a factor, use a whole number followed by 3 decimal places, for example: 0.123.) Purchase of equipment Working capital investment Annual net cash receipts Road construction Working capital released Salvage value of equipment Net present value Answer is complete but not entirely correct. 20% PV Present Year(s) Cash Flow Value of Factor Cash Flows Now (275,000) 1.000 (275,000) Now (100,000) 1.000 (100,000) 1-4 120,000 0.833 X 99 960 X 3 120.000 x 0.694 X 83,280 X 4 80,000 0.579 46,320 4 285 000 X 0.482 137 370 X (8070) X