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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 $ 450,000 $ 155,000 $ 170,000 $ 51,000 $ 76,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth ces 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 7B-1 and Exhibit 7B-2. to determine the appropriate discount factor(s) using tables. EXHIBIT 7B-1 Present Value of St; an Periods 4% 5% 7% 8% 9% 10% 11% 12% 14% 15% 179 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0.826 0.820 0.813 0.806 0.800 2 0925 0.907 0.890 0873 0.857 0842 0826 0812 0797 0783 0769 0.756 0743 0731 0.718 0.706 0694 0.683 0672 0.661 0650 0640 3 0.889 0.864 0.840 0816 0.794 0772 0751 0.731 07120693 0675 0.658 0641 0624 0.609 0.593 0579 0564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0735 0.708 0683 0.659 0.636 0.613 0.592 0572 0.552 0.534 0.516 0499 0482 0.467 0.451 0.437 0.423 0.410 5 0.822 0784 0 747 0.713 0681 0650 0621 0593 0567 0543 0519 0.497 0.476 0456 0437 0419 0402 0386 0.370 0355 0.341 0.328 6 0.790 0746 065 0666 0630 0596 0.564 0535 0507 0480 0456 0432 0410 0390 0370 0.352 0335 0.319 0303 0289 0275 0.262 7 0760, 0711 0665 0623 0583 0.547 0.513 0.482 0.452 0425 0.400 0.376 0354 0.333 0314 0296 0279 0.263 0249 0235 0222 0.210 8 0731 0677 0627 0582 0540 0.502 0.467 0434 0404 0376 0351 0327 03050285 0 266 0 249 0733 0218 0204 0191 01790168 9 0.703 0645 0.592 0544 0.500 0.450 0424 0 391 0,361 0333 0.308 0.284 0 263 0243 0225 0209 0.194 0.1800167 0155 0.144 0134 10 0676 0614 0.558 0508 0.463 0.422 0.386 0.352 0322 0295 270 0247 0.227 0.208 0191 0176 0162 01490137 0126 0.116 0.107 11 0650 0585 05270475 0429 0388 0.350 0317 0287 0261 0.237 0215. 0195 0178 0162 01480135 012301120103. 0094 0086 12 0.625 0.557 0.4970444 0397 0.356 0.319 0 286 0.257 0.231 0208 0.187 0.168 0152 0137 0124 0.1120102 0092 0083 0076 0.069 13 0 601 0530 0469 04150368 0.326 0290 0.258 0229 0204 0182 01630945 0130 0116 0104 0093 0.04 0.075 0068 0061 0.055 14 0577 0.505 0442 0.388 0340 0.299 0.263 0232 0.205 0181 0160 0141 0.125 0111 0.099, 0088 0078 0069006Z 0055 0049 0.044 15 0.555 0.481 0.417 0.362 0.315 0275 0.239 0209 0183 016001400123 0108 0095 0084 0074 0065 0.057 0.051 0.045 0.040 0.035 16 0.534 0.458 0 394 0339 0292 0252 0218 0188 0163 0141 01230107 093 0081 0071 0062 0054 0047 0042 0036 0032 0028 17 0513 0436 0371 0317 0270 0231 0198 01700146 0125 0108 0093 0.080 0.069 0050 0052 0045 0039 0034 0.030 0026 0023 18 0.494 0.416 0.350 0296 0250 0212 0.180 0153 0130 0111 0,095 00 0.069 0059 0.051 0.044 0.038 0032 0.028 0.024 0.021 0.018 19 0475 0396 0331 0277 0232 0194 0164 0138 0116 0098 0083 0070: 6060 0051 0.043 0037 0037 0077 0.023 0020 0011 0014 20 0456 0377_ 0.312 0.258 0215 0.178 0149 0124 01040087 0073 0.0610051 0043 0.037 0031 0026 0.022 0.019 0.016 0014 0.012 20 0439 0359 0294 0242 0199 0164 01350112 0092 0077 0064 0053 0044 0037 0.031 0026 002 0018 0.015, 2013 0011 0009 22 0122 0342 0278 0226 0184 0150 0123 0101 0083 0068 005 004 0038 0032 0626 0022 001 00150013 0011 0009 0007 23 0406 0326 0262 0211 01700138 6112 0091 0.074 00600049 0040 033 0027 0.022 0.018 0.015 0012 0.0100009 0.007 0006 24 0390 0310 0.247 0197 0158 0126 0102 0082 0066 0053 0.043 0025 0028 0.0230019: 0015: 0013 01010 0008 0.007 0.0060005 25 0.375 0295 0233 0184 0146 0 116 0092 0074 0.059 0047 0038 0030 0024 0020:00160013 0010 0009 0007 0005 0.005 0.004 0351 0281 0220 0172 0.135 0106 0084 0066 0053 0042 0033 0026 002 0017 0.014 0.01 0009 0007 0006 0.005 0004 0.003 27 03470268 0.207 0161 0125 0098 0.06 06000470117 0029 002 001 DOM 0011 0009 007 0005 0005 0004 0.003 0002 28 0.333 0255 0195 01500.116 0090 00690054 0042 0.033 0026 020 016 0012 0010 0008 0006 2005 2004 2003 0.0020002 0321 0243 0,185 0141 0102 0.082 006 0048 0037 0029 0,022 00 0034 Dom 0 008 0006 0005 0004 2003 2002 2002 0.002 03080221 0974 0131 099 075 057 7044 03 0026 010 0015 0013 009 000 0005 0004 000 Do 0020002 0001 02080142 0097 0.067 146003200220015 0.011 000 0005 004 0007 pod2 bout boonon: 0000 0000 0000 0000 0000 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 The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $16,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: Annual cost of servicing, taxes, and licensing Repairs, first year Repairs, second year Repairs, third year $ 4,900 $ 2,800 $ 5,300 $ 7,300 At the end of three years, the fleet could be sold for one-half of the original purchase price Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $68,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $14,000 security deposit at the beginning of the lease peri which would be refunded when the cars were returned to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 18% What is the net present value of the cash flows associated with the purchase alternative? (Round your final answer to the nearest whole dollar amount. Enter negative amount with a minus sign.) Net present value What is the net present value of the cash flows associated with the lease alternative? (Round your final answer to the nearest whole dollar amount. Enter negative amount with a minus sign.) Net present value