Dakota mining company has to competing proposals a diamond cordial or a hydraulic excavator. Both pieces of equipment have an initial investment of 483,711 the net cash flows estimate for the two proposals are as followed.

Nez present value-unequal lives Dakota Mining Company has two competing proposals: a diamond core drill or a hydraulic excavator. Both pleces of equipment have an initial investment of $483,711. The net cash flows estimated for the two proposals are as follows: The estimated residual value of the diamond core drill at the end of Year 4 is $190,000. Deterinine which equipment should be favored, comporing the net present values of the two proposals and assuming a minimum rate of return of 12%. Use the present value table appearing above