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Windhoik Mines, Limited, of Nambia, is contemplating the purchase of equipment to exploit a minetal deposit on land to which the company has mineral rights.

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Windhoik Mines, Limited, of Nambia, is contemplating the purchase of equipment to exploit a minetal deposit on land to which the company has mineral rights. An engineeting 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 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 Exhibit 1284 and Exhibit 128-2, to determine the appropriate discount factor(5) 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. 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.)

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