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 $20,000 and generate cash inflows of $15,000 per year for the next 3 years.

Project Thompson involves replacement of the existing system; it will cost $265,000 and generate cash inflows of $61,000 per year for 6 years.

Using a(n) 9.28% cost of capital, calculate each project's NPV, and make a recommendation based on your findings.