The management of Kleinburg Industrial Bakery is analyzing two competing investment projects and they must decide which one can be done immediately and which one can be postponed for at least a year. The bakery has a 12% required rate of return to evaluate all investments that directly impact operations and amortizes the investment in plant and equipment using straight-line depreciation over 10 years on the difference between the initial investment and terminal disposal price.The details of each proposed investment are as follows

	Project A	Project B
	Increase Capacity to Serve New Markets	Upgrade Customer Service
Proposed by	Production manager	Sales and marketing manager
Rationale	Assets are operating at full capacity and we are unable to attend to all the demand, therefore we need to expand our facilities to produce more kilograms.	The fleet of trucks and vans need to be upgraded with tracking devices and remote connections to flex the planning routes. The new software will allow the company to be paperless and respond faster to customers' requests
Investment	600,000$	345,000$
Working Capital	50,000$	150,000$
Terminal disposal value	60,000$	None
Expected useful life	10 year	5 years
Expected increase in operating income	400,000$	80,000$
Expected savings in administrative costs	none	40,000

Calculate the net present value of each proposal.