Exercise 26-9 (Static) 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 FVA of S1) (Use appropriate factor(s) from the tables provided.) Year Net Cash Flows Project 1 tes Project 2 Initial investment $ (60,000) $ (60,000) 1. 30,000 35,000 2. 20,000 3. 20,000 30,000 5,000 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. Required A Required B 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 2 Cumulative Net Cash Flows Year Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Initial investment $ (60,000) S (60,000) 1 2 3 Payback period Project 1 Payback period Project 2 Payback period Based on payback penod, which project is preferred? years years Proy 9 of 16 Next >