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		$149,400		$165,700		$199,200
Annual net income:
Year 1		14,034		18,030		27,179
2		14,034		17,380		23,010
3		14,034		15,980		21,130
4		14,034		12,200		12,825
5		14,034		9,104		11,940
Total		$70,170		$ 72,694		$96,084

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