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 Initial investment $ (60,000) 30,000 Project 1 Project 2 $ (60,000) 35,000 20,000 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 Year Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Project 2 Cumulative Net Cash Activate Window 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 Year Cumulative Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Net Cash Flows Initial investment $ (60,000) $ 60,000 $ (60,000) S 60,000 Year 1 30,000 30,000 35,000 35,000 Year 2 30,000 20,000 Year 3 5,000 5,000 Payback period Project 1 Payback period 2.00 years Project 2 Payback period 2.25 years Based on payback period, which project is preferred? Project 1 Required B > 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Project 2 Initial investment $ (60,000) $ (60,000) 1. 30,000 35,000 2. 3. 30,000. 5,000 20,000 20,000 ences 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 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 Project 1 Year 1 $ 30,000 Present Value Factor Present Value of Net Cash Flows 09091 $ 27 273 Activate Wit 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 $ 30,000 0.9091 $ 27,273 Year 2 30,000 0.8264 24,792 Year 3 5,000 0.7513 3,757 Totals 65,000 $ 55,822 ces Initial investment Net present value $ 55,822 Project 2 Year 1 $ 35,000 0.9091 $ 31,819 Year 2 20,000 0.8264 16,528 Year 3 20,000 0.7513) 15,026 Totals $ 75,000 $ 63.373 Initial investment Net present value $ 63,373 Based on net present value, which project is preferred? Project 2 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Project 2 Initial investment $ (60,000) $ (60,000) 1. 30,000 35,000 2. 30,000 20,000 3. 5,000 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? Complete this question by entering your answers in the tabs below. Required 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 Present Value of Net Factor Cash Flows Project 1 Year 1 S 30,000 0.9091 S 27.273 an nonl nonet