4. Mark's Manufacturing Inc. is evaluating three potential projects, each requiring an initial investment of $25,000. Each project will last for 4 years and generate the following net annual cash flows: Year Project X Project Y Project Z I $6,000 $9,000 $14,000 2 $8,000 $8,000 $13,000 3 $10,000 $7,000 $12,000 4 $12,000 $6,000 $11,000 Total $36,000 $30,000 $50,000 The equipment's salvage value is zero, and Mark uses straight- line depreciation. Mark will not accept any project with a cash payback period over 2.5 years. Mark's required rate of return is 10%. Instructions (a) Compute each project's payback period, indicating the most desirable project and the least desirable project using this method. (Round to two decimals and assume in your computations that cash flows occur evenly throughout the year.) (b) Compute the net present value of each project. Does your evaluation change? (Round to the nearest dollar.)