Problem 12-16 (Algo) Net Present Value Analysis (L012-2] Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploita mineral deposit on land to which the Cotripany 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 equipent and tubers 5.350.000 Working capital required $ 105,000 Annual net cash receipts $335.000 Cost to construct new roads in three years $ 41,000 Salvage value of equipment in four years 5.66,000 "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 company's required rate of return is 18% Click here to view Exhibit 23.1 and Exhibit 128-2 to determine the appropriate discount factors) using tables Required: 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. Required Required What is the net present value of the proposed mining project(Enter negative amount with a minus in Round your final answer to the nearest whole dollar amount Neprest Required> Problem 12-16 (Algo) Net Present Value Analysis (L012-2] 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 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 5 358,00 Working capital required $ 105,000 Annual net cash receipts $135,000 Cost to construct new roads in three years 5 41,000 Salvage value of equipment in four years 5.66,000 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 company's required rate of return is 18% Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factors) 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. Required A Required Should the project be accepted? Yes ONO