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Axis Corp. is considering an investment in the best of two mutually exclusive projects. Project Kelvin...

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 ​$52,500 and generate cash inflows of ​$10,000 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 ​$55,000 per year for 6 years. Using​ a(n) 10.36​% cost of​ capital, calculate each​ project's NPV, and make a recommendation based on your findings.

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