Bunker Hill Mining Company has two competing proposals: a processing mil and an electric shovel Both pieces of equipment have an initial investment of 5732,696. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Processing MIHI Electric Shovel $223,000 $279,000 190,000 259.000 198,000 239,000 158,000 245.000 120,000 100,000 87,000 87.000 The estimated residual value of the processing mill at the end of Year 4 $280,000 Present Value of Si at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 0.826 0.756 0.694 3 0 .840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 21 9.567 9.497 0.402 The estimated residual value of the processing mill at the end of Year 4 is $280,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% Year 20% 0.943 0.893 0.797 0.870 0.756 0.833 0.694 0.890 0.658 0.579 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.482 0.402 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.335 0.572 0.497 0.432 0.376 0.327 0.284 0.279 0.233 0.467 0.424 0.194 0.356 0.322 0.247 0.162 Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of retum of 100 User present valve table appearing above Processing MIHI Electric Shovel Present value of net cash flow total Less amount to be invested Net present value which project should be favored