calculate each​ project's NPV, and make a recommendation based on your findings.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 15P: The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls...
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Axis Corp. is studying 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 replaces the existing​ system; it will cost ​$215,000 and generate cash inflows of ​$50,000 per year for 6 years. Using​ a(n) 10.39​% cost of​ capital, calculate each​ project's NPV, and make a recommendation based on your findings.

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