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Compute net present value for each project. Based on net present value, which project is preferred? Gonzalez Company is considering two new projects with the
Compute net present value for each project. Based on net present value, which project is preferred? Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on investments is PV of $ of $ PVA of $ and FVA of $
Note: Use appropriate factors from the tables provided.
tableNet Cash FlowsYearProject Project Initial investment,$$
a Compute payback period for each project. Based on payback period, which project is preferred?
b Compute net present value for each project. Based on net present value, which project is preferred?
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Compute net present value for each project. Based on net present value, which project is preferred?
Note: Round your present value factor to decimals. Round your final answers to the nearest whole dollar.
tabletableNet CashFlowstablePresent ValueFactortablePresent Value of NetCash FlowsProject Year Year Year Totals$$Initial investmentNet present value,,,$Project Year Year Year Totals$$Initial investmentNet present value,,,$
Based on net present value, which project is preferred?
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