1 Exercise 11-9 (Algo) Payback period; net present value; unequal cash flows LO P1, P3 Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on Investments is 10% (PV or Sl. FV 01 51. PVA of Stand EVA of 51) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Project 2 Initial investment 3(60,000) 5(58,500) 15,000 35,000 2. 31,700 20,000 19,000 17,500 o. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred? book ak Print Complete this question by entering your answers in the tabs below. References Required A Required Compute payback period for each project. Based on payback period, which project is preferred? (Cumulative net cash outflows must be entered with a minus sign. Do not found your intermediate calculations. Round your Payback period answer to 2 decimal places.) Project 1 Project 2 Year Net Cash Flows Cumulative Net Net Cash Cumulative Cash Flows Flows Net Cash Flow Initiativestment 5 (60,000) 5 (50.500) Year Year 2 Year 3 Payback period Project Payback period years Project 2 Payback period years Based on payback period, which project is preferred? Required > Exercise 11-9 (Algo) Payback period; net present value; unequal cash flows LO P1, P3 Gonzalez Company is considering two new projects with the following net cash flows. The company's required Investments is 10% PV 01 $1. FV of $1. PVA of $1. and FVA 0f 51 (Use appropriate factor(s) from the tables pro Year Initial investment Net Cash Flow Project Project 2 $(60,000) $(58,see) 15,000 35.ee 31,700 20,000 19,000 17, see 2. 3. a. Compute payback perlod for each project. Based on payback period, which project is preferred? b. Compute net present value for each project Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. nces Required A Required B Compute net present value for each project. Based on net present value, which project is preferred? (Round your prese value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Present Value of Net Cash Flows Net Cash Present Value Flows Factor Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Projed 2 Year Year 2 Years Total In investment Net present value Based on ne present value, which project is preferred?