3 Problem 12-16 Net Present Value Analysis (L012-2) 25 points 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 Prire Cast 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 $ 380,000 $120,000 $ 115,000 54. 39.000 "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 elsewhereThe company's required rate of returns 18 Click here to view Exhibit 120.1 and 126.2. to determine the appropriate discount factors) using tables Required: a. What is the net present value of the proposed mining project 6. Should the project be accepted