Question: I keep getting the first one wrong. idk what Im doing wrong. Net Present Value-Unequal Lives Bunker Hill Mining Company has two competing proposals: a

 I keep getting the first one wrong. idk what Im doingwrong. Net Present Value-Unequal Lives Bunker Hill Mining Company has two competing

I keep getting the first one wrong. idk what Im doing wrong.

proposals: a processing mill and an electric shovel. Both pieces of equipmenthave an initial investment of $717,175. The net cash flow estimated forthe two proposals are as follows: Net Cash Flow Year Processing Mill

Net Present Value-Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $717,175. The net cash flow estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $219,000 $274,000 N 195,000 254,000 3 195,000 234,000 155,000 241,000 118,000 99,000 85,000 85,000 The estimated residual value of the processing mill at the end of Year 4 is $270,000.Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.1620.452 8 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 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 return of 10%. Use the present value table appearing above. Processing Mill Electric Shovel Present value of net cash flow total 799,207 Less amount to be invested 717,175 717,175 Net present value to 82,032 Which project should be favored? Electric Shovel

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