Question: Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of s621,967.

Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of s621,967. The net cash flows estimated for the two proposals are as follows: The estimated residual value of the processing mill at the end of Year 4 is $250,000. Determine which equipment should be favored, comparing the net present values of the two proposais and aswuming a minimum rate of return of 12%6. Use the present value table appearing above
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