The estimated residual value of the diamond core drill at the end of $4$ is $$360,000.$

Present Value of $$1$ at Compound Interest

Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of $12\%.$ Use the present value table appearing above.

Diamond Core Drill Hydraulic Excavator

Present value of net cash flow total $

Amount to be invested

Net present value

Which project should be favored?

Diamond Core Drill grad