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 $778,708. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Hill Electric Shovel $237,000 711,000 211,000 $290.000 275,000 254,000 168,000 251,000 125,000 107,400 92,000 92,000 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% 1 0.943 0.909 2 0.800 3 0.540 0.826 0.751 0.893 0.797 0.756 0.870 0.833 0.001 0.712 0.658 0.579 4 1.742 Del Deb 0372 0.482 5 0.747 0.621 0.567 0.497 0.402 G 0.705 0.501 0.507 0.132 0.335 7 0.565 0.513 0.452 0.375 0.279 11 1627 11.46/ 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 LO 0.558 0.380 0.322 0.2417 0.162 Determine which equipment should be favored, comparing the net present values of the ten proposals and suming a minimum rate of return of 10%. Use the present value table appearing abo Profiad w lata Processing Hill Electric Shovel Net present value Which project should be favored? Processing Mill My Wa For each proposal, multiply the present value factor for each year Edhibit 2) by that year's net cash flow. Use the residual value of the Processing to equate the usefulves (Erb 21 Subad the amount to be invested from the total present value of the net cachow Ling Djeci, Deering Directv 4.