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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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.
| Â | Â | Â | Project Kilo | Â | Project Lima | Project Oscar | Â | |
| Capital investment | Â | Â | $158,100 | Â | $168,300 | Â | $210,600 | Â |
| Annual net income: | Â | Â | Â | Â | Â | Â | Â | |
| Year | 1 | Â | 13,260 | Â | 17,850 | Â | 28,050 | Â |
| Â | 2 | Â | 13,260 | Â | 16,830 | Â | 22,950 | Â |
| Â | 3 | Â | 13,260 | Â | 15,810 | Â | 21,930 | Â |
| Â | 4 | Â | 13,260 | Â | 11,730 | Â | 13,770 | Â |
| Â | 5 | Â | 13,260 | Â | 8,670 | Â | 12,750 | Â |
| Total | Â | $66,300 | Â | $70,890 | Â | $99,450 | Â | |
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Depreciation is computed by the straight-line method with no salvage value. The company’s cost of capital is 15%.
Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round Discount Factor to 5 decimal places.)
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