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Axis Corp. is studying two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $55,000 and generate cash inflows
Axis Corp. is studying two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost
$55,000 and generate cash inflows of $25,000 per year for the next 3 years. Project Thompson replaces the existing system; it will cost $265,000 and generate cash inflows of $65,000 per year for 6 years.
Using a(n) 8.46% cost of capital,
calculate each project's NPV,
and make a recommendation based on your findings.
PLEASE HELP!!! will thumbs up
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