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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.
| Project Kilo | Project Lima | Project Oscar | ||||||
| Capital investment | $158,100 | $168,300 | $210,600 | |||||
| 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%.
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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