Wildhorse Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $$435,000,$ has an expected useful life of $11$ years and a salvage value of zero, and is expected to increase net annual cash flows by $$74,600.$ Project B will cost $$253,000,$ has an expected useful life of $11$ years and a salvage value of zero, and is expected to increase net annual cash flows by $$45,200.$ A discount rate of $10\%$ 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, e$.$g$.125$ and profitability index answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

Net present value $-$ Project A

$ $$

Profitability index $-$ Project A $$

Netpresent value $-$ Project B

$

Profitability index $-$ Project B $$

Which project should be accepted based on Net Present Value?