The estimated residual value of the diamond core drill at the end of Year 4 is $450,000

Net present valueunequal lives Dakota Mining Company has two competing proposals: a diamond core drill or a hydraulic excavator. 80th pieces of equipment have an initial investment of $900,000. The net cash flows estimated for the two proposals are as follows: Yea r Net Cash Flow Diamond Core Drill $300,000 300,000 275,000 250,000 200,000 100,000 50,000 50,000 Net Cash Flow Hydraulic Excavator $475,000 450,000 350,000 200,000 The estimated residual value of the diamond core drill at the end of Year 4 is $450,000. Present Value of $1 at Compound Interest Yea r 0.890 0.840 0.792 O. 747 0.705 0.665 0.627 0.592 0.558 o. gog 0.826 0.751 0.583 0.521 0.564 0.513 0.467 0.424 0.386 o.8g3 o.7g7 0.712 0.635 0.567 0.507 0.452 0.404 0.361 0.322 15% 0.870 0.756 0.658 0.572 0.497 0.376 0.327 0.284 0.247 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.152 Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 15%. use the present value table appearing above. If required, round to the nearest dollar. Diamond Core Drill Hydraulic Excavator Present value of net cash flow total Amount to be invested Net present value Which project should be favored?