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Windhoek Mines tumated, of Nambul, s conternglating the purchase of equpment to exploit a minerai depout on land to which the company has mineral rigtits

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Windhoek Mines tumated, of Nambul, s conternglating the purchase of equpment to exploit a minerai depout on land to which the company has mineral rigtits An engineering and cost analysis has been made and it is expected that the loblowerg eash fiows would be issociated with opening and ppecating a mine in the area. "Receipts from sales of ore, less out offpocket costs for salaries utilies, insurance, and so forth. The mineral deposit would be evtausted after four years of mining At thas point, the working capital would be released for reimestinent eisewhere. The company' requared rate of retimn is top Required: a. What is the net present value of the proposed mining peoject? b. Should the poyect be accepted? Complete this questien by entering your answers in the tabs below. What is the net preseot vilue of the proposed mining pioject? Windhoek Mines: timated of Namibia, is contemplating the purchase of equpenent to expioit a mineral deposit on land to which ihe company has maneral rights: An engireering and cost analysis has been made, and it is expected that the followeng cash fows wockld be associated with opening and operating a mine in the area: -Receipts from sales of ore, less out-of-pocket costs for salaries, utiaties. insurance, and so forth The mineral deposit would be exhausted after four years of mening. At that point the working capital would be released for reinvestment eisewhere The compariy's requred rate of refurn is 19% : Click here to view ExhibitzB-1 and Exhibt 782 to determine the appropriate discount factortis using tables: Required: a. What is the net presert value of the proposed mining project? b. Should the project be accepted? Complete this question by entering your answers in the tabs below: What is the not present value of the proposed mining project? Notes. Enter negative amount with a minun sign, Epund your final answer to the nesirest whale deellar amaunt

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