Question
Henkel Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as
Henkel Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.?
Project Kilo | Project Lima | Project Oscar | ||||||
Capital investment | $150,000 | $165,000 | $200,000 | |||||
Annual net income: | ||||||||
Year | 1 | 14,000 | 18,000 | 27,000 | ||||
2 | 14,000 | 17,000 | 23,000 | |||||
3 | 14,000 | 16,000 | 21,000 | |||||
4 | 14,000 | 12,000 | 13,000 | |||||
5 | 14,000 | 9,000 | 12,000 | |||||
Total | $70,000 | $72,000 | $96,000 |
I already calculated the cash payback period which is:
Project Kilo: 3.4 years
Project Lima: 3.33 years
Project Oscar: 3.17 years
I NEED HELP WITH THESE OTHER TWO!! PLEASE HELP ASAP
Compute the net present value for each project. (Round computations and final answer for present value to 0 decimal places, e.g. 125. Round computations for Discount Factor to 5 decimal places. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Project Kilo $___________
Project Lima $___________
Project Oscar$___________
Compute the annual rate of return for each project. (Round answers to 2 decimal places, e.g. 10.50. Hint: Use average annual net income in your computation.)
Project Kilo %_____________
Project Lima %_____________
Project Oscar %
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