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 $575,158. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year 1 2 Processing Mill $196,000 174,000 Electric Shovel $245,000 227,000 3 174,000 210,000 4 139,000 216,000 5 106,000 6 88,000 7 76,000 8 76,000 The estimated residual value of the processing mill at the end of Year 4 is $250,000. 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 0.577 0.487 Check My Work 3 more Check My Work uses remaining. Previous