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:

Unit = $	Project Turtle	Project Snake
Capital investment	1,105,000	625,000
Annual cash flows	180,000	105,000
Estimated useful life (years)	10	10

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?