UVW Ltd. is considering two long-term projects, Project U and Project V, with the following characteristics:

• Project U: Cost of Capital - 9%, Initial Investment - $300,000, Cash Inflow Year 1 - $70,000, Cash Inflow Year 2 - $80,000, Cash Inflow Year 3 - $90,000
• Project V: Cost of Capital - 10%, Initial Investment - $350,000, Cash Inflow Year 1 - $80,000, Cash Inflow Year 2 - $90,000, Cash Inflow Year 3 - $100,000 Determine the profitability index for Project U and Project V. Compare the two projects and provide a recommendation.