Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $750,000. The net cash flows estimated for the two proposals are as follows: The estimated residual value of the processing mill at the end of Year 4 is $280,000. The estimated residual value of the processing mill at the end of Year 4 is $280,000. The estimated residual value of the processing mill at the end of Year 4 is $280,000. Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 15%. Use the present value table appearing above. If required, round to the nearest dollar.

Processing Mill Electric Shovel

Present value of net cash flow total $ $

Less amount to be invested $ $

Net present value $ $

Which project should be favored?