Axis Corp. is studying two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost

$48,500

and generate cash inflows of

$24,500

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)

9.99%

cost of capital, calculate each project's NPV, and make a recommendation based on your findings.

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Part 1

The NPV of project Kelvin is

$enter your response here.

(Round to the nearest cent.)