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. TABLE 3 Present Value of 1 (n) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 23456789012215 .96154 .95238 .92456 .90703 .88900 .86384 .83962 .85480 .82270 .82193 .94340 0.93458 .92593 .91743 .90909 .90090 .89286 .86957 .89000 0.87344 .85734 .84168 .82645 .81162 .79719 .75614 0.81630 .79383 .77218 .75132 .73119 .71178 .65752 .79209 0.76290 .73503 .70843 .68301 .65873 .63552 .57175 .78353 .74726 0.71299 .68058 .64993 .62092 .59345 .56743 .49718 .74622 .79031 .75992 .71068 .73069 .67684 .62741 0.58201 .70259 .64461 .67556 .61391 .70496 0.66634 .63017 .59627 .56447 .53464 .50663 .43233 .66506 0.62275 .58349 .54703 .51316 .48166 .45235 .37594 .54027 .50187 .46651 .43393 .40388 .32690 .59190 0.54393 .50025 .46043 .42410 .39092 .36061 .28426 .55839 0.50835 .46319 .42241 .38554 .35218 .32197 .24719 .64958 .58468 .52679 0.47509 .42888 .38753 .35049 .31728 .28748 .21494 .62460 .55684 .49697 0.44401 .39711 .35554 .31863 .28584 .25668 .18691 .60057 .53032 .46884 0.41496 .36770 .32618 .28966 .25751 .22917 .16253 .57748 .50507 .44230 0.38782 .34046 .29925 .26333 .23199 .20462 .14133 .55526 .48102 .41727 0.36245 .31524 .27454 .23939 .20900 .18270 .12289 16 .53391 .45811 .39365 0.33873 .29189 .25187 .21763 .18829 .16312 .10687 17 .51337 .43630 .37136 0.31657 .27027 .23107 .19785 .16963 .14564 .09293 18 .49363 .41552 .35034 0.29586 .25025 .21199 .17986 .15282 .13004 19 .47464 .39573 .33051 0.27615 .23171 .19449 .16351 20 .45639 .37689 .31180 0.25842 .21455 .17843 .14864 .08081 .13768 .11611 .07027 .12403 .10367 .06110 TABLE 4 Present Value of an Annuity of 1 (n) Payments 4% 1 .96154 2 23 1.88609 3 2.77509 4 5 3.62990 4.45182 6 7 8 9 10 12 122 11 13 14 15 16 17 18 19 10.56312 9.89864 9.29498 11.11839 10.37966 9.71225 11.65230 10.83777 10.10590 12.16567 11.27407 10.47726 12.65930 11.68959 10.82760 13.13394 12.08532 11.15812 20 12% 15% 5% 6% 7% 8% 9% 10% 11% .95238 .94340 0.93458 .92593 .91743 .90909 .90090 .89286 .86957 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 Calculate the net present value of both projects. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Project Turtle Net present value Project Snake Calculate the profitability index for each project. (Round answers to 2 decimal places, e.g. 15.25.) Profitability index Project Turtle Project Snake Which project should Mobil accept?