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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
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 $52,500 and generate cash inflows of $20,000 per year for the next 3 years. Project Thompson involves replacement of the existing system; it will cost $315,000 and generate cash inflows of $70,000 per year for 6 years. Using a(n) 10.42% cost of capital, calculate each project's NPV, and make a recommendation based on your findings
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