Ahmad Corp. is considering investment in the best of two mutually exclusive projects. Project K involves an overhaul of the existing system; it will cost US$45,000 and generate cash inflows of US$20,000 per year for the next 3 years. Project T involves replacement of the existing system; it will cost US$275,000 and generate cash inflows of US$60,000 per year for 6 years. Using an 8 percent cost of capital, calculate each project's NPV and make a recommendation based on your findings.