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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 $70,000 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 ?$220,000 and generate cash inflows of $50,000 per year for 6 years. Using? a(n) 10.11?% cost of? capital, calculate each? project's NPV, and make a recommendation based on your findings.

The NPV of project Kelvin is ?$

Reference no: EM132459205

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