Axis Corp. is considering an investment in the best of two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $40,000 and generate cash inflows of $20,000 per year for the next 3 years. Project Thompson involves the replacement of the existing system; it will cost $260,000 and generate cash inflows of $60,000 per year for 6 years. Using a cost of capital of 8%, calculate each project's NPV, and make a recommendation based on your findings.

The NPV of project Kelvin is?(Round to the nearest cent.)

The NPV of project Thompson is?(Round to the nearest cent.)

Which project should the company choose?