Question: 6 Problem 14-16 (Algo) Net Present Value Analysis [LO14-2] Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit


Problem 14-16 (Algo) Net Present Value Analysis [LO14-2] 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. The company estimated the following cash flows related to 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 19%. Click here to view Exhibit 148:1 and to determine the appropriate discount factor(s) 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? Note: Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Should the project be accepted
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