Net present value$-$unequal lives

The estimated residual value of the diamond core drill at the end of Year $4$ is $$210,000.$

Present Value of $$1$ at Compound Interest

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.

Diamond Core Drill Hydraulic Excavator