Souncements CALCULATOR PHUNTER VERSION BACK Brief Exercise 12-5 McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $542,000, has an expected useful life of 12 years, a salvage of zero, and is expected to increase net annual cash flows by $74,500. Project will cost $338,000, has an expected useful life of 12 years, a salvage value of zero, and is expect Increase net annual cash flows by $48,000. A discount rate of 7% is appropriate for both projects. Click here to view.py table. Compute the net present value and profitability index of each project. (If the net present value is negative use either a negative sin preceding the number vor parentheses ep (15). Round present value answers to decimal places, e.V. 125 and profitability index answers to 2 decimal places, .0.15.25. 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 Which project should be accepted based on Net Present Value> should be accepted which project should be accepted based on profitability index? should be accepted