Net Dreat value nequat lives Mulkey Development Company has two competing projects an electric shovel and a processing mil. Both projects have an initial investment of 5035 000 The net cash flows estimated for the two projects are as follows Net Cash Flow Year Electric Shovel Processing MINI 1 $254,000 $330,000 2 226,000 295,000 3 226,000 272,000 4 180,000 279,000 5 137,000 110,000 99,000 99,000 The estimated residual value of the electric shovel at the end of Year 4 is $320,000, Year 1 2 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0:567 0.497 0.402 3 4 5 Year 1 2 Eve of the electric shovel at the end of Year 45 3320,000 Present Value of $1 at Compound Interest 5% 109 12 15% 20 0.943 0.909 0.893 0.870 0.83 1890 0,826 0.797 0.750 0.694 0340 0.751 0.212 0.658 0.37 0.792 0.003 0.630 0.52 0.182 0.247 0.621 0.567 0.497 0.02 0.705 0.564 0.507 0.432 0.335 0.665 OS 0.452 0176 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.101 04 0.194 0.558 0.30 0.322 0.247 0.162 10 Compare the net prsent values of the two projects and assume a minimum rate of return of 10%. Use the present value table appearing above. Electric Shovel Processing MINI Total present value of net cash row 956,621 X 1.157,029 X Les amount to be invested 835,909 335,909 Net present Value 120,712 X 321.120 X which project should be favored? Processing Mill