Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Windhoek Mines, Uld, of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on and to which the company has mineralrights. An engineering

image text in transcribed
Windhoek Mines, Uld, of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on and to which the company has mineralrights. An engineering and cost analysis has been made, and it is expected that the following cash flow would be associated with opening and operating a mine in the area Cost of it and the 500,000 Working Capital que $185.000 al net cash reciate $120,000 Cost to construct role in your the $5,000 Salve value ont in four years 52.00 "Receipts from sales of oreless 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 18% Click here to view Ext 120.1 and Estiba: 120.2. to determine the appropriate discount factory using tables Required: 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 What is the net resent value of the rooted medicative with you all in the whole wount) C Pray Nood och O UD e D V Windhoek Mines, Uld, of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on and to which the company has mineralrights. An engineering and cost analysis has been made, and it is expected that the following cash flow would be associated with opening and operating a mine in the area Cost of it and the 500,000 Working Capital que $185.000 al net cash reciate $120,000 Cost to construct role in your the $5,000 Salve value ont in four years 52.00 "Receipts from sales of oreless 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 18% Click here to view Ext 120.1 and Estiba: 120.2. to determine the appropriate discount factory using tables Required: 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 What is the net resent value of the rooted medicative with you all in the whole wount) C Pray Nood och O UD e D V

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Executive Roadmap To Fraud Prevention And Internal Control Creating A Culture Of Compliance

Authors: Joel T. Bartow, Martin T. Biegelman

2nd Edition

1118004582, 9781118004586

More Books

Students also viewed these Accounting questions

Question

Describe the limitations of a legacy MRP system.

Answered: 1 week ago

Question

What is the preferred personality?

Answered: 1 week ago