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. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Year Project 1 Initial investment $ (60,000) Flows Project 2 $ (60,000) 1. 30,000 35,000 2. 3. 30,000 5,000 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? 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 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.) Net Cash Flows Project 1 Project 2 Cumulative Net Cash Flows Year Cumulative Net Cash Flows Net Cash Flows Initial investment $ (60,000) $ (60,000) $ (60,000) $ (60,000) Year 1 30,000 24,792 35,000 31,819 Year 2 30,000 20,000 Year 3 5,000 20,000 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? 2.00 years 2.25 years Project 1 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 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.) Net Cash Flows Project 1 Project 2 Cumulative Net Cash Flows Year Cumulative Net Cash Flows Net Cash Flows Initial investment $ (60,000) $ (60,000) $ (60,000) $ (60,000) Year 1 30,000 24,792 35,000 31,819 Year 2 30,000 20,000 Year 3 5,000 20,000 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? 2.00 years 2.25 years Project 1 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 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Initial investment $ 0 $ 0 $ 0 $ 0 $ 0 Net present value Based on net present value, which project is preferred? $ 0