Compute the annual rate of return for each project round

Reference no: EM13580934

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		$150,000	$165,000	$200,000
Annual net income:
Year	1	14,000	18,000	27,000
	2	14,000	17,000	23,000
	3	14,000	16,000	21,000
	4	14,000	12,000	13,000
	5	14,000	9,000	12,000
Total		$70,000	$72,000	$96,000

I already calculated the cash payback period which is:

Project Kilo: 3.4 years

Project Lima: 3.33 years

Project Oscar: 3.17 years

I NEED HELP WITH THESE OTHER TWO!! PLEASE HELP ASAP

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).)

Project Kilo $___________

Project Lima $___________

Project 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.)

Project Kilo %_____________

Project Lima %_____________

Project Oscar %

Reference no: EM13580934

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