Mulkey Development Company has two competing projects: an electric shovel and a processing mill. Both projects have an initial investment of $927,886. The net cash flows estimated for the two projects are as follows: Processing Mill Net Cash Flow Year Electric Shovel 1 $283,000 $368,000 2 252,000 328,000 3 252,000 303,000 201,000 311,000 153,000 127,000 110,000 110,000 The estimated residual value of the electric shovel at the end of Year 4 is $350,000. 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 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0,404 0.327 0.233 9 0.592 0.424 0.361 0.2841 0.194 10 0.558 0.386 0.322 0.247 0.162 Compare the net present values of the two projects and assume a minimum rate of return of 10%. Use the present value table appearing above. Electric Shovel Processing Mill Total present value of net cash flow Less amount to be invested i Net present value Which project should be favored