Net Present Value-alive Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $753,926 The net cash flows estimated for the two proposals are as follows Net Cash Flow Year Processing Hill Electric Shovel 1 2 $241,000 214,000 $301,000 280,000 3 214,000 258,000 171,000 265,000 130,000 108,000 94,000 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% 0.543 0909 0.893 0.870 0.833 2 0.00 0.826 0.797 0.756 0.604 3 0.840 0.751 4 0.792 0.663 0.712 0.636 0.658 0.579 0.572 8.482 0747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0335 7 0.065 0.513 0.452 0.376 0.279 10 0.627 0.467 0.592 0.424 0.361 0.558 0.306 0.322 0.404 0.327 0233 0204 0.394 0247 0.362 Determine which equipment should the favored, comparing the net present values of the two proposals and assuming a manamum rate of return of 12% Use the present value table appearing above. Processing Mill Present value of net cash flow total Less amount to be invested Net present value Which project should be favored? 000 Electric Shovel