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.?
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Project Kilo
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Project Lima
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Project Oscar
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Capital investment
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$150,000
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$165,000
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$200,000
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Annual net income:
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Year
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1
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14,000
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18,000
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27,000
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2
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14,000
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17,000
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23,000
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3
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14,000
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16,000
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21,000
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4
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14,000
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12,000
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13,000
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5
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14,000
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9,000
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12,000
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Total
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$70,000
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$72,000
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$96,000
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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 %