JK Products, Inc. is considering investing in either of two competing projects that will allow the firm to eliminate a production bottleneck and meet the growing demand for its products. The firm's engineering department narrowed the alternatives down to tow Status Quo (SQ) and High Tech (HT). Working with the accounting and finance personnel, the firm's CFO developed the following estimates of the cash flows for SQ and HT over the relevant 6-year time horizon. The firm has an 11 % required return and views these projects as equally risky. Initial Outflow (CF0) Project SQ Project HT $ 670,000 $ 940,000 Year (t) Cash Inflows (CFt) 1 2 3 4 5 6 $ 250,000 200,000 170,000 150,000 130,000 130,000 $ 170,000 180,000 200,000 250,000 300,000 550,000 a) Calculate the next present value (NPV) of each project, assess its acceptability and indicate which project is best using NPV b) Calculate the internal rate of return (IRR) of each project, assess its acceptability and indicate which project is best using IRR c) Calculate the profitability index (PI) of each project, assess its acceptability and indicate which project is best using PI d) Which of two mutually exclusive projects would you recommend JK Product undertake? Why?