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Windhoek Mines, Uimited, 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, Uimited, 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 wouid be assoclated with opening and operating a mine in the area: Phecevipts trom sales of ore, less out-of pocket costs for salaries, uthiles, insurance, and so forth. The munecal deposit would be exhausted after four yeirs of thining. At that point, the wotking capital would be relensed for Pequired: A. What is the riet present value of the proposed mining project? a instionla the nropet be accepted? Corpolete this guestian by entering vour answers in the tabs tielow. Windhoek Mines, Limited, 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: "Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The thinetat teposit would be exhausted after for years of mining. At that point, the working capital would be released for reirvestment elsowhere, The company's required rate of return is 18x Chick here to view Extmalt izg:s and to determine the appropriate discount factoria using tablers Required: a. What is the net present value of the proposed mining project? hishowitithe propect ter accepted? Complete this question by entering vour answers in the tates below

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