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 $825,939. The net cash flows estimated for the two proposals are as follows: Year 1 2 Net Cash Flow Processing Mill Electric Shovel $283,000 $354,000 252,000 328,000 252,000 303,000 201,000 311,000 153,000 127,000 110,000 110,000 The estimated residual value of the processing mill at the end of Year 4 is $350,000. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.493 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 0.452 0.513 0.376 0.279 Previous Check My Work