Brief Exercise 12-5 McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $430,436, has an expected useful life of 11 years, a salvage value of zero, and is expected to increase net annual cash flows by $70,500. Project B will cost $265,334, has an expected useful life of 11 years, a salvage value of zero, and is expected to increase net annual cash flows by $45,000. A discount rate of 9% is appropriate for both projects Click here to view PV table. Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e 125 and profitability index answers to 2 decimal place e.g. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Project A Profitability index Project A Net present value Project B Profitability index Project B Which project should be accepted based on Net Present Value? should be accepted. T Which project should be accepted based on profitability index? should be accepted