1 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 of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows 5 Year Project 1 Initial investment $(50,000) points 1. 2. 10,000 25,300 3. 30,000 look Ask Project 2 $(70,000) 35,000 22,000 25,000 a. 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? Complete this question by entering your answers in the tabs below. Port 01 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 round your intermediate calculations. Round your Payback Period answer to 2 decimal places.) Project 1 Project 21 Year Net Cash Flows Cumulative Net Cash Nat Cash Plows Flows Cumulative Nat Cash Flows Initial investment $ (50,000) $ (50,000) $(70,000 $70,000) Year 1 10,000 (40,000) 35,000 (35,000) Year 2 25.300 (14,700) 22.000 (13,000) Year 3 30,000 15,300 25,000 12,000 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? years years Next 1 10,000 35,000 25,300 30,000 22,000 25,000 a. Compute payback period for each project. Based on payback period, which project is preferred? 5 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. Required A Required B Compute net present value for each project. Based on net present value, which project is preferred? (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar) Project 1 Year 1 Year 2. Year 3 To Inal investment Net prosent value Project 2 Year 1 Your 2 Yee 3 Totais Initial investment Nat Cash Flows Present Value Factor Present Valus of Net Cash Flows D $ $ 0 $ Nel present valu Based on net present value, which project is preferred? $ 0 Check my work