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			$165,850		$176,550		$202,800
Annual net income:
Year	1		13,910		18,725		29,425
	2		13,910		17,655		24,075
	3		13,910		16,585		23,005
	4		13,910		12,305		14,445
	5		13,910		9,095		13,375
Total			$69,550		$74,365		$104,325

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