Net present valueunequal lives Dakota Mining Company has two competing proposals: a diamond core drill or a hydraulic excavator. Both pieces of equipment have an initial investment of $769,869. The net cash flows estimated for the two proposals are as follows: Year Net Cash Flow Diamond Core Drill Net Cash Flow Hydraulic Excavator 1 $263,000 $329,000 2 234,000 305,000 3 234,000 281,000 4 187,000 289,000 5 142,000 6 118,000 7 103,000 8 103,000 The estimated residual value of the diamond core drill

Net present value-unequal lives proposals are as follows: The estimated residual value of the diamond core drill at the end of Year 4 is $330,000. Diamond Core Drill Hydraulic Excavator \begin{tabular}{l} \hline Present value of net cash flow total $ \\ Amount to be invested \\ Net present value \end{tabular} Which project should be favored