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 $1) (Use appropriate factor(s) from the tables provided.) Year Net Cash Flows Project 1 Initial investment 1. 2. 3. $(60,000) 15,000 33,300 19,500 Project 2 $(58,000) 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? s 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 Year Cumulative Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Net Cash Flows Initial investment $ (60,000) $ (60,000) $ (58,000) $ (58,000) Year 1 15,000 35,000 Year 2 33,300 20,000 19,500 20,000 Year 3 Payback period Project 1 Payback period Project 2 Payback period years years Project 2 Required A Required B > Based on payback period, which project is preferred? 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 $ EA 0 $ 0 $ 0 $ 0 EA $ Net present value Based on net present value, which project is preferred? $ SA