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2:19. Project Lima Beet liikine - 13,000 Henkel Company is considering three long-term capital investment proj als. Each investment has a useful life of 5
2:19. Project Lima Beet liikine - 13,000 Henkel Company is considering three long-term capital investment proj als. Each investment has a useful life of 5 years. Relevant data on each project are follows. U kis riquisine en bas 002 and UE, ES 1125 Dia dudonas nosas delprisvinced slogu. 79q27 MIN STX sva Project Kilo Project Oscar 01 szeCapital investment si * $150,000 1202 9.1 $165,000 sf ci $200,000.00 Annual net income: SIGM ells Year 1 Dale 14,000 18,000 27,000 20 14,000 19 17,000 23,000 3 Strated metal - 14,000 101 116,000 dreq de 21,000 (Isaia-b4utbol 114,000 seis tolo. 12,000 endibbs n5700,0014 10 105: 14,000 st sa a 9,000 zi vodom 12,000 orang transva Totalten uns $ 70,000 a $ 72,000 onsdT $ 96,000 --- 1 balts Doblongs SV 33 0 Depreciation is computed by the straight-line method with no salvage value. The con pany's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) De Instructions contes bet tornare (a) Compute the cash payback period for each project. (Round to two decimals.) (b) Compute the net present value for each project. (Round to nearest dollar.) tau (c) Compute the annual rate of return for each project. (Round to two decimals.) (Hint. Use average annual net income in your computation.) studia (d) Rank the projects on each of the foregoing bases. Which project do you recommend? B
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