Brief Exercise 26-5 Mcknight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $506,194, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $69,900. Project B will cost $314,010, has an expected useful life of 12 years, a salage value of zero, and is expected to increase net annual cash flows by $45,200. A discount rate of 7% is appropriate for both projects-Click here to view PV tab 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 O decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value - ProjectA $ Profitability index - Project A Net present value - Project B Profitability index - Project EB Which project should be accepted based on Net Present Value? should be accepted. Which project should be accepted based on profitability index? should be accepted