Question 11 of 52 expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will 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, hasa $47,000. A discount rate of 7% is appropriate for both projects. Click here to view the factor 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 eg (45). Round present value answers to 0 decimal places, eg. 125 and profitability index answers to 2 decimal places, e.g. 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 $ should be accepted. $ Which project should be accepted based on Net Present Value? Minimize

Question 11 of 52 Mg Company informative anal penture Print $494,000 hosted of 12 347,000 Atate of Parate for heaton Chuck Not resentful Project A Few the factor a 125 to 2 mal places 1525 For cautions, we 5 decimal places as delayed in the factor table provided $ Profitability de Net prend vale-Prije $ Profitability infer Project Which project should be accepted based on Net Present Value should be accepted Minimize