eview View Help Tell me what you want to do 49. Mobil Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each project: Project Turtle Project Snake Capital investment $1,105,000 $625,000 Annual cash flows 180,000 105,000 Estimated useful life 10 years 10 years Mobil Company uses a discount rate of 9% to evaluate both projects. Instructions (a) Calculate the net present value of both projects. (b) Calculate the profitability index for each project. (c) Which project should Mobil accept? F 1 49. Mobil Company has hired a consultant to propose a way to increase the company's revenues. 2 The consultant has evaluated two mutually exclusive projects with the following information 3 provided for each project: 4G Project Turtle Project Snake 5 Capital investment $1,105,000 $625,000 6 Annual cash flows $180,000 $105,000 7 Estimated useful life 10 10 8 Mobil Company uses a discount rate of 9% to evaluate both projects. 9 (a) Calculate the net present value of both projects. 10 Project Turtle Project Snake 11 Annual cash flows 12 Discount Factor 13 Calcul 14 Investment 15 NPV 16 (b) 17 18 Present Value Cash Flow 19 Investment 20 Profitability Index profitability index for each project Project Turtle Project Snake (c) Which project should Mobil accept? WS