Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $700,000. The net cash flows estimated for the two proposals are as follows:

	Net Cash Flow
Year	Processing Mill		Electric Shovel
1	$313,000		$350,000
2	241,000		325,000
3	241,000		314,000
4	256,000		314,000
5	178,000
6	143,000
7	127,000
8	127,000

The estimated residual value of the processing mill at the end of Year 4 is $270,000.

Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 12%. If required, round to the nearest dollar.

	Processing Mill	Electric Shovel
Net present value	$fill in the blank 2	$fill in the blank 3