Net Present Vante-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 $706,470. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Processing Mill Year Electric Shovel $283,000 $226,000 201,000 201,000 160,000 122,000 102,000 88,000 262,000 242,000 249,000 88,000 The estimated residual value of the processing mill at the end of Year 4 is $280,000. Year 1 2 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.9090.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 Present Value of $1 at Compound Interest 6% 10% 12% 15% Year 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.756 0.694 0.840 0.751 0.579 0.792 0.683 0.658 0.572 0.497 0.432 0.482 0.402 0.747 0.705 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.335 0.665 0.376 0.621 0.564 0.513 0.467 0.424 0.386 0.279 0.233 9 0.627 0.592 .558 0.327 0.284 0.247 0.194 0.162 10 0 Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 12%. L the present value table appearing above Processing Mill Electric Shovel Present value of net cash flow total Less amount to be invested Net present value Which project should be favored