Problem 26-5A (Part Level Submission) Henkel Company is considering three long-t

Question

Problem 26-5A (Part Level Submission)

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

(b)

Compute the net present value for each project. (Use the above tables.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 15.25.)

Net present value

Project Kilo

Project Lima

Project Oscar

Capital investment $149,500 $164,900 $200,200 Annual net income: Year 1 13,876 17,930 26,949 2 13,876 17,010 22,890 3 13,876 16,120 20,940 4 13,876 11,850 13,167 5 13,876 9,173 11,890 Total $69,380 $ 72,083 $95,836

Explanation / Answer

Here are the supporting calculations-

*Kilo

   32,980.00

The table wa no t visibel so I took data for pv value form internet.

Net present value Project Kilo $                       (2,754) Project Lima $                       11,444 Project Oscar $                       52,673

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