crnewconnect.mheduca... $3 0 Saved Help Save & Exit Submit Check my work Windhoek Mines, Lid., 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 10 be associated with opening and operating a mine in the area: points Cost of new equipment required and timbers Working capital required A $360, 000 eBook Annual net cash inflows* $100, 000 Cost to construct new roads in three years $140, 000 $ 42, 000 Print Salvage value of equipment in four years $ 67, 000 References *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, etc. 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%. Required: a. Determine the net present value of the proposed mining project. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and PV factor. Round the final answers to the nearest whole dollar. Any cash outflows should be indicated by a minus sign.) Year(s) Amount of Present Value of Item Cash Flows Cash Flows Cost of equipment required Now $ (360,000) 360,000) Working capital required Now $ (100,000) 100,000 Net annual cash receipts 1-4 140,000 Mc