Henkel Company is considering three long-term capital investment proposals. Each investment has a useful life...
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Accounting
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
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