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 $683,357. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $208,000 $260,000 2 185,000 241,000 3 185,000 223,000 4 148,000 229,000 5 112,000 6 94,000 7 81,000 8 81,000 The estimated residual value of the processing mill at the end of Year 4 is $260,000.