Pronghorn Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Project Blue Capital investment $474,000 674,000 Annual net income 38,000 73,000 Estimated useful life 8 years 8 years Depreciation is computed by the straight-line method with no salvage value. Pronghorn requires an 8% rate of return on all new investments. The present value of 1 for 8 periods at 8% is 0.54027 and the present value of an annuity of 1 for 8 periods is 5.74664. Click here to view PV tables. (a) Your answer has been saved. See score details after the due date. Compute the cash payback period for each project. (Round answers to 1 decimal place, e.g. 15.2.) Cash payback period Project Red 4.9 years Project Blue 4.3 years (b) Compute the net present value for each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 5,275.) Project Red Project Blue Net present value $ Attempts: 1 of 1 used