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.

Problem 24-1A 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 $162,750 Project Lima Project Oscar $208,650 Capital investment Annual net income: $173,250 13,650 13,650 13,650 13,650 13,650 $68,250 Year 1 18,375 17,325 16,275 12,075 8,925 $72,975 28,875 23,625 22,575 14,175 13,125 $102,375 4 Total Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)