Project A because it has al 13. Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $735,548. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovelo bono 1 $224,000 $280,000 2 199,000 260,000 3 240,000 159,000 246,000 5 121,000 6 101,000 7 87,000 8 87.000 The estimated residual value of the processing mill at the end of Year 4 is $280,000. Determine which proposal should be favored by calculating the net present value of each proposal assuming a minimum rate of return of 10%. L 199,000 4 a. b Which project should be chosen and why