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 $583,518. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel $187,000 166,000 166,000 133,000 101,000 84,000 73,000 73,000 2 3 4 $234,000 217,000 200,000 206,000 8 The estimated residual value of the processing mill at the end of Year 4 is $230,000