Problem 11-12A Basic Net Present Value Analysis [LO11-21] Modified 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 three years40,000 Salvage value of equipment in four years $ 275,000 $ 100,000 $ 120,000* S 65,000 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 elsewhere. The com pany's required rate of return is 20%. Click here to view Exbibit 118-1 and Exhibit 118-2, to determine the appropriate discount factor(s) using tables Required: a. Determine the net present value of the proposed mining project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s). When you enter a factor, use a whole number followed by 3 decimal places, for example: 0.123.)