McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $541,790, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $74,500. Project B will cost $337,749, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $48,000. A discount rate of 7% is appropriate for both projects. Compute the net present value and profitability index of each project.