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Concord Company is considering two different, mutually exclusive capital expenditure proposals. Project Awill cost $494,000, has an expected useful life of 12 years, a salvage

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Concord Company is considering two different, mutually exclusive capital expenditure proposals. Project Awill cost $494,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $68,400. Project B will cost $331,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $47.000. A discount rate of 7% 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 es (45). Round present value answers to decimal places, e.g. 125 and profitability Index answers to 2 decimal places, c.8. 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. Which project should be accepted based on profitability index? + should be accepted

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