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 $740,000. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Electric Shovel 1 $341,000 2 Processing Mill $301,000 258,000 258,000 266,000 312,000 3 324,000 312,000 4 5 190,000 6 144,000 7 133,000 8 133,000 The estimated residual value of the processing mill at the end of Year 4 is $290,000. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 12%. If required, round to the nearest dollar. Processing Mill Electric Shovel Net present value 271,731 X $ 222,329 X Which project should be favored? Processing Mill