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Score: 0 of 1 pt 6 of 6 (3 complete) HW Score: 47.14%, 3.3 of 7 pts Warm-Up 10-3 (similar to) D Assigned Media Question
Score: 0 of 1 pt 6 of 6 (3 complete) HW Score: 47.14%, 3.3 of 7 pts Warm-Up 10-3 (similar to) D Assigned Media Question Help Axis Corp. is considering an investment in the best two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $52,500 and generate cash inflows of $30,000 per year for the next 3 years. Project Thompson involves replacement of the existing system; it will cost $310,000 and generate cash inflows of $70,000 per year for 6 years. Using a(n) 8.44% 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.) Enter your answer in the answer box and then click Check
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