Bunker Hal Mining Company has two competing proposals: a processing mall and an electric showel, Both pleces of equipment have an inteal investment of $5790,000.$ The feet cash flows estimated for the two proposals are as follows:

$\backslash$table$[[$Year$,$Net Cash Flow$],[$Precessing Mall,Electric Shovell$],[1,1310,000,$$$330,000],[2,240,000,325,000],[3,240,000,325,000],[4,260,000,320,000],[5.,180,000,],[6,130,000,],[3,120\mathrm{.}000,],[8,120,000,]]$

The estimated revidual value of the processing mall at the end of Year $4$ is $$280,000.$

Present Value of $$1$ at Compeund Interest

$\backslash$table$[[$Year$,6\%,104\%,12\%,15\%,20\%],[1,0\mathrm{.}943,0\mathrm{.}909,0\mathrm{.}893,0\mathrm{.}870,0\mathrm{.}833],[2,0\mathrm{.}850,0\mathrm{.}236,0\mathrm{.}797,0\mathrm{.}714,0\mathrm{.}694],[3,0\mathrm{.}840,0\mathrm{.}751,4\mathrm{.}71?,4\mathrm{.}454,0\mathrm{.}579],[4,0\mathrm{.}702,4\mathrm{.}483,0\mathrm{.}434,0\mathrm{.}572,0\mathrm{.}482],[5,0\mathrm{.}747,9\mathrm{.}621,0\mathrm{.}567,0\mathrm{.}497,4\mathrm{.}40?],[6,0\mathrm{.}705,4\mathrm{.}5\mathrm{.}4,4\mathrm{.}50\%,4\mathrm{.}433,0\mathrm{.}395],[7,0\mathrm{.}665,0\mathrm{.}513,0\mathrm{.}452,0\mathrm{.}376,0\mathrm{.}279],[8,0\mathrm{.}627,0\mathrm{.}467,0\mathrm{.}404,4\mathrm{.}327,0\mathrm{.}233],[9,0\mathrm{.}592,0\mathrm{.}434,0\mathrm{.}361,0\mathrm{.}284,0\mathrm{.}194],[10,0\mathrm{.}558,0\mathrm{.}384,0\mathrm{.}332,0\mathrm{.}247,0\mathrm{.}162]]$

Oetermire which equipment should be forored, comparing the net present values of the two proporals and assuming a minimum rate of refors of $15\%.$ Use the present value table appearing atove. If required, round to the nearest dotar.

Processing Mill Electric Shovel

Present value of net canh for total

Lest smont to be invested

Net present value