Net present valueunequal lives
Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. The following data is provided:
DATA
		Net Cash Flow
Year		Processing Mill	Electric Shovel
1		$313,000	$350,000
2		241,000	325,000
3		241,000	314,000
4		256,000	314,000
4	(residual value)	270,000
5		178,000
6		143,000
7		127,000
8		127,000
Initial investment			$700,000
Minimum rate of return			12%
		Processing Mill	Electric Shovel	Formulas
Net present value