I'm having a lot of trouble with this because of the residual value calculations.

The image is weird but the text reads, "Gold Creek Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $541,787. The net cash flows estimated for the two proposals are as follows"

Net Cash Flow
Year	Processing Mill		Electric Shovel
1	$172,000		$215,000
2	153,000		200,000
3	153,000		184,000
4	122,000		189,000
5	93,000
6	77,000
7	67,000
8	67,000

Gold Creek Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial Investment of $541,787. 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 $220,000. Present Value of $1 at Compound Interest Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 12%. Use the present value table appearing above. Present value of net cash flow total Less amount to be invested Net present value Which project should be favored