Please help with the incorrect annual rate of return.

Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Capital investment Annual net income Estimated useful life Project Red Project Blue $440,000 640,000 25,000 60,000 8 years 8 years Depreciation is computed by the straight-line method with no salvage value. Savanna requires an 8% rate of return on all new investments. The present value of 1 for 8 periods at 8% is.540 and the present value of an annuity of 1 for 8 periods is 5.747. Your answer is correct. Compute the cash payback period for each project. (Round answers to 1 decimal places, eg. 15.2.) Project Red Project Blue Cash payback period 5.5 years 4.6 years e Textbook and Media Your answer is correct. Compute the net present value for each project. Project Red Project Blue Net present value $ 19760 164580 Compute the net present value for each project. Project Red Project Blue Net present value $ 19760 164580 eTextbook and Media x Your answer is incorrect. Compute the annual rate of return for each project. (Round answers to 1 decimal places, eg. 15.2.) Project Red Project Blue Annual rate of return 5.7 % 94% eTextbook and Media Your answer is correct Which project should Savanna select? Project