Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Project Blue Capital investment Annual net income $440,000 25,000 640,000 60,000 Estimated useful life 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. Compute the cash payback period for each project. (Round answers to 1 decimal places, e.g. 15.2.) Cash payback period Project Red years Project Blue years Compute the net present value for each project. Net present value $ tA Project Red S Project Blue Compute the annual rate of return for each project. (Round answers to 1 decimal places, e.g. 15.2.) Annual rate of return Project Red Project Blue de % % Which project should Savanna select? Project Blue Project Red