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 is expected that the following cash flows will be associated with opening and operating a mine in the area:

Cost of new equipment and timbers	R 227,000
Working capital required	95,000
Net annual cash receipts	110,000*
Cost to construct new roads in 3 years	50,000
Salvage value of equipment in four years	53,750

*Receipts from sales of ore, less out of pocket costs of salaries, utilities, insurance, and so forth. (The currency in Namibia is the rand, denoted by R)

It is estimated that the mineral deposits would be exhausted after 4 years of mining. At that point, the working capital would be relased for reinvestment elsewhere. The company's discount rate is 22%.

Required:

Determine the NPV of the proposed mining project.(Negative amounts should be indicated with a minus sign. Round discount factor(s) to three decimal places. Round other intermediate calculations and final answer to the nearest whole number.)

Net present valus

R

Should the project be accepted?