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