net present value - unequal lives

I cant figure out the present value of net cash flow for processing mill.

Please, thank you!

N eBook Calculator 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 $446,798. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $153,000 $191,000 2 136,000 177,000 136,000 164,000 109,000 168,000 83,000 6 69,000 7 60,000 8 60,000 The estimated residual value of the processing mill at the end of Year 4 is $190,000. 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 0.840 0.751 0.712 0.658 0.579 Drovioue Nevt. 132 PM 100% 6/7/2019 EBUUR Calculator 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 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 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 15 %. Use the present value table appearing above. Processing Mill Electric Shovel 503,990 Present value of net cash flow total 446,798 446,798 Less amount to be investe 57,192 Net present value Which project should be favored? Electric Shovel Feedback For each proposal, multiply the present value factor for each year (Exhibit 2) by that year's net cash flow. Use the residual value of the Processing Ml to Nevt Y Check My Workd Drevioue 131 PM 6/7/2019 100%