You are a Financial Analyst for KYC Company. Management is considering five different projects to help increase employee productivity at workplace. Management wants you to evaluate below projects. Note: Given our class time constraints, this assignment has been simplified by removing depreciation, net operating capital, and tax rates. The only cash flow you would have in the terminal cash flow is if there is a salvage value, and we assume that the salvage value and the book value match so calculating tax benefit or liability is not necessary.

Proposal 4: Purchase of HP Portable monitors to increase employee productivity at a cost $120,000 with cash flows of $40,100 for year 1 and increase at 1.8% for the next three years. The salvage value of the equipment is anticipated to be $19,500 at the end of four years.

Proposal 5: Purchase new HP laptops for 300 employees at a cost of $1,500 each. The company estimates that increased employee productivity from using the laptops will account for cash flows of 250,000 in year 1 with an increase of 1.5% for the next two years. Salvage value at end of three years is $120,000.

You determine the initial outlay and cash flow for each year (including the final year cash flow where salvage value would be recovered). The WACC is 12%. Calculate the NPV for each project.