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			$159,650		$169,950		$202,800
Annual net income:
Year	1		13,390		18,025		28,325
	2		13,390		16,995		23,175
	3		13,390		15,965		22,145
	4		13,390		11,845		13,905
	5		13,390		8,755		12,875
Total			$66,950		$71,585		$100,425

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