2 00:40:03 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 FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Initial investment 1. 2. 3. Required A Required B Net Cash Flows 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? Project 1 $(60,000) 15,000 26,100 21,000 Complete this question by entering your answers in the tabs below. Year Compute payback period for each project. Based on payback period, which project is preferred? Note: 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. S Project 1 Net Cash Flows Project 2 $(56,500) 35,000 15,000 25,000 Initial investment Year 1 Year 2 Year 3 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? (60,000) 15,000 26,100 21,000 Cumulative Net Cash Flows $ (60,000) 15,000

Gonzalez Company is considening two new projects with the following net cash flows. The company's required rate of ieturn on ivestments is 10%. (PV otst, EV of S1, PVh of S1, and FVA of 51) Note: Use oppropriote fector(s) from the tobles provided. 6. Compute payback penod for each project Elased on payback peniod, wtich project is preferred? b. Compute net present vasue for each pioject Based on net present value, whach project is preferred? Complete this question by entering your answers in the tabs below. Compute payback period for each project. Based on payback period, which project is preferred? Neter Cumulative net cash osthons mist be entered with a minus bigh. Do not round yout intermediate calcuiationi. Alound your Paybark Period answer to 2 dedmal places. Gonzalez Company is considering two new projects with the foliowing net cash flows. The company's required rate of return on investments is to\%. (PV of S1. EV of S1, PVA of \$1, and EVA of S1) Note: Use opproprlate foctor(s) from the tobies provlded. o. Compute payback penod for each project Based on payback penod, 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. Compute payback period for each project, tased on parback poriod, which project is preferred? Note: Cumulative net cash outflows must be entered with a minus sign, Do not round your intermediate calculations. Hound your payback Period answer to 2 decimat places