2 teams within a company make proposals for improvement in the daily work of the company. Read the proposals of each team, draw the timeline of each project, calculate the cost-benefit ratio and the net present value of their proposals and define which of the 2 teams deserves the support to execute their improvement proposal based only on the aspect economic. The company's equivalence rate is 1.5% per month. It considers that both projects are short-term (1 year)

Proposal 1: • Reduction of the use of paper: This team proposes to implement a system that eliminates production orders and other control documents from the production area, implementing a management system and installing 5 control computers in the production area. Currently, $ 50,000 a month is spent on paper. The system costs $ 1,350,000 and the computers cost $ 10,000 each. The system will be implemented by an expert who will charge $ 75,000 in advance and $ 75,000 at month 6.

Proposal 2: The final process machine is becoming obsolete, it is estimated that among the problems due to production stoppages, delays in customer deliveries, and other complications, this machine causes the company losses of $ 80,000 each month. It is proposed to buy a new machine that will cost $ 400,000, in addition, it requires monthly maintenance that costs $ 20,000 a month.