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 of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Initial investment $(60,000) 1. 15,000 2. 3. 28,600 20,500 Project 2 $(57,000) 35,000 20,000 20,000 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? Answer is not complete. 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.) Net Cash Flows Present Value Factor Present Value of Net Cash Flows Project 1 Year 1 $ 15,000 0.8929 $ 31,250 Year 2 28,600 0.7972 15,944 x 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.) Net Cash Flows Present Value Factor Present Value of Net Cash Flows Project 1 Year 11 S 15,000 0.8929 $ 31,250 Year 2 28,600 0.7972 x 15,944 Year 3 20,500 0.7118 14,235 Totals $ 64,100 $ 61,429 Initial investment Net present value $ 61,429 Project 2 Year 11 $ 35,000 0.8929 Year 2 20,000 0.7972 Year 3 Totals Initial investment 20,000 0.7118 $ 75,000 S 0 Net present value $ 0 Based on net present value, which project is preferred? < Required A Required B