Question #5 Mobil Asphalt Paving Company has received two proposals for a new Asphalt Paving Machine. Information provided for each machine is as follows: Big Boss Paver Perfect Paver Model 700 Model 777 Capital investment $995,000 $575,000 Annual cash flows $170,000 $95,000 Estimated useful life 10 years 10 years Mobil Company uses a discount rate of 9% to evaluate both projects. Note: Factor for the Present Value of an Ordinary Annuity 10 years @9% = 6.41766 Instructions (a) Calculate the net present value of both projects. (b) Calculate the profitability index for each project. (c) Which project should Mobil accept? (d) What might be some "qualitative" factors to consider