Sarasota Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Project Blue Capital investment $478,000 678,000 Annual net income 40,000 75,000 Estimated useful life 8 years 8 years Depreciation is computed by the straight-line method with no salvage value. Sarasota 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.