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Can you do it for both projects please. Thanks. Will upvote. Axis Corp. is considering an investment in the best of two mutually exclusive projects.
Can you do it for both projects please. Thanks. Will upvote.
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 $48,500 and generate cash inflows of $24,500 per year for the next 3 years. Project Thompson involves replacement of the existing system; it will cost $320,000 and generate cash inflows of $70,000 per year for 6 years. Using a(n) 8.33% cost of capital, calculate each project's NPV, and make a recommendation based on your findings. The NPV of project Kelvin is $. (Round to the nearest cent.)Step by Step Solution
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