McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $519,277, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $71,600. Project B will cost $367,031, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $51,800. A discount rate of 7% is appropriate for both projects.

Compute the net present value and profitability index of each project