McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $543,000, has an expected useful life of12years, a salvage value of zero, and is expected to increase net annual cash flows by $74,600. Project B will cost $319,000, has an expected useful life of12years, a salvage value of zero, and is expected to increase net annual cash flows by $45,600. A discount rate of7% is appropriate for both projects.

1. Net present value - Project A ?
2. Profitability index - Project A ?
3. Net present value - Project B ?
4. Profitability index - Project B ?