QUESTION TWO ABC Itd 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. Working with the accounting and finance personnel, the firm's CFO developed the following estimates of the cash flows for A and B over the relevant 6 -year time horizon. The firm has an 11% required rate of return and views these projects as equally risky. (i) Calculate the net present value (NPV)of each project, assess its acceptability, and indicate which project is best using NPV. (6marks) (ii) Calculate the internal rate of return (IRR) of each project, assess its acceptability, and indicate which project is best using IRR. 6 marks) (iii) Calculate the profitability index (PI) of each project, assess its acceptability, and indicate which project is best using PL. (6 marks) (iv) Which of the two mutually exclusive projects would you recommend ABC Products undertake? (2 marks) b) Describe how the IRR and NPV approaches are related