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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 $168,950 $179,850 $202,800
Annual net income:
Year 1 14,170 19,075 29,975
2 14,170 17,985 24,525
3 14,170 16,895 23,435
4 14,170 12,535 14,715
5 14,170 9,265 13,625
Total $70,850 $75,755 $106,275

Depreciation is computed by the straight-line method with no salvage value. The company

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