Sheridan Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $$412,000,$ has an expected useful life of $11$ years and a salvage value of zero, and is expected to increase net annual cash flows by $$65,000.$ Project B will cost $$271,000,$ has an expected useful life of $11$ years and a salvage value of zero, and is expected to increase net annual cash flows by $$45,000.$ A discount rate of $8\%$ is appropriate for both projects.

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Calculate 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 e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round present value answers to $0$ decimal places, e$.$g$.125$ and profitability index answers to $2$ decimal places, e$.$g$.15\mathrm{.}52.$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.1\mathrm{.}25124.)$

$\backslash$table$[[,,$Project A$,,$Project B$],[$Net present value,$$,,$$$,],[$Profitability index,,,,$]]$

Which project should be accepted based on net present value?

should be accepted.