eBook Print Item Net Present Value-Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $788,082. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $240,000 $300,000 2 214,000 278,000 3 214,000 257,000 4 170,000 264,000 5 130,000 6 108,000 < 7 94,000 8 94,000 The estimated residual value of the processing mill at the end of Year 4 is $300,000. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 67 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 Previous