/take/sigment/takeAssignment Main.do?noketatakssignmentSessionLocatori&inprogress=false Net Present Value-Unequal Lives Bunker Hall Mining Company has two competing proposals a processing mill and an electric shovel. Both pieces of equipment have an Initial investment of $463,750. The net cash flows estimated for the two proposals are as follows: Year 1 2 Net Cash Flow Processing in $150,000 141,000 141,000 112,000 Electric Shovel 5190,000 183,000 169,000 174,000 3 4 85.000 71.000 62.000 8 52,000 The estimated residual value of the processing at the end of Year 4 200,000 Present Value of $1 at Compound Interest Year 690 1090 129 159 2016 1 0.009 0.893 0.070 0.833 0.990 0.026 0.297 0.756 2 0.840 0.751 0.712 0.650 0.579 4 0.792 0.683 0.636 0.572 0.482 7 8 9 US MAX W X N Nex Hox MX + takeAssignment/takeAnsignment Main dolinvoker-Bake AsignmentSessionLocator.inprogresse 0.404 Present Value of 51 at Compound interest Year 104 129 2016 1 0.943 0.109 0.393 0.870 2 0.89 0.026 0.797 0.756 0.694 0.840 0.751 0.656 0.579 0.636 0.572 0.482 5 0.747 0.621 0.567 6 0.705 0.564 0.507 0:432 0.335 0.665 0.513 0.452 0.376 0:279 2 0.627 0.467 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 0.55 0.386 0.322 0.247 0.162 Determine which equipment should be favored, comparing the net present values of the two proposals and assuming minimum rate of return of 15. Use the present valve table appearing above. Processing Mini Electric Shovel Present value of net cash flow total Less amount to be investis Net present value Which project should be favored? RI E 4 ho num DIE SCK