E10-3 Axis Corp. is considering investment in the best of two mutually exclusive proj- ects. Project Kelvin involves an overhaul of the existing system; it will cost $52,500 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 $265,000 and generate cash inflows of $61,000 per year for 6 years. Using an 8.75% cost of capital, calculate each project's NPV, and make a recommenda- tion based on your findings