Reference no: EM13571769

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			$158,100		$168,300		$198,900
Annual net income:
Year	1		13,260		17,850		28,050
	2		13,260		16,830		22,950
	3		13,260		15,810		21,930
	4		13,260		11,730		13,770
	5		13,260		8,670		12,750
Total			$66,300		$70,890		$99,450

Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) (Refer the below table)

Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

kilo years

LIma years

Oscar Years

Compute the net present value for each project. (Round computations and final answer for present value to 0 decimal places, e.g. 125. Round computations for Discount Factor to 5 decimal places. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)

Kilo $

Lima $

Oscar $

Compute the annual rate of return for each project. (Round answers to 2 decimal places, e.g. 10.50. Hint: Use average annual net income in your computation.)

Kilo %

Lima %

Oscar %