McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $537,000, has an expected useful life of 15 years, a salvage value of zero, and is expected to increase net annual cash flows by $69,000. Project B will cost $351,000, has an expected useful life of 15 years, a salvage value of zero, and is expected to increase net annual cash flows by $47,000. A discount rate of 8% is appropriate for both projects

Net present value -

Project A Profitability index -

Project A Net present value -

Project B Profitability index -

Project B Net present value -

Which project should be accepted based on Net Present Value?

Which project should be accepted based on profitability index?