Sweet Acacia Company is considering two different, mutually exclusive capitad expenditure proposals. Project A will...

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Accounting

Sweet Acacia Company is considering two different, mutually exclusive capitad expenditure proposals. Project A will cost \$429.000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by \(\$ 71.000\). Project B will cost \(\$ 269,000\), has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by \(\$ 47,000\). A discount rate of \(9\%\) is appropriate for both projects. Click here to view the factor table. Calculate the net present value and profitability index of each project. 0f the net present value as negative. use either a negative sign preceding the number eg,-45 or parentheses es,(45). Round preient volue onwers to 0 decimal places, es 125 and profitabiuty indox answers to 2 decimat places, es.15.52. For colculation purposes, use 5 decimal places as daployed in the factor table provided, eg.1.25124.). Which project should be accepted based on net present value?Which project should be accepted based on net present value? Which project should be accepted based on profitability index?

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