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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.

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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 $ 275,000 $ 100,000 $ 120,000 $ 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 148.1 and Exhibit 148 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 muestion hu enterinn vour answers in the tabs below Pe, 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 14B-1 and Exhibit 14B-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

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