- Step 1: Set up ratios. Milk = $4x$, water = $x$. After adding 5 liters water: milk = $4x$, water = $x + 5$. New ratio: $\frac{4x}{x + 5} = \frac{2}{1}$.
- Step 2: Solve. $4x = 2(x + 5) \implies 4x = 2x + 10 \implies 2x = 10 \implies x = 5$.
- Step 3: Find milk. Milk = $4x = 4 \cdot 5 = 20$ liters.
- Step 4: Verify. Original: $4:1$, milk = 20, water = 5. After 5 liters: water = $5 + 5 = 10$, ratio = $20:10 = 2:1$.
- Step 5: Conclusion. Option (2) 20 liters is correct.