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 Initial investment 1. 2. 3. Net Cash Flows Project 1 Project 2 $(60,000) $(58,000) 15,000 35,000 33,300 20,000 19,500 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 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 Project 2 Cumulative Net Cash Net Cash Flows Flows $ (58,000) Initial investment $ (60,000) Year 1 Year 2 Year 3 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? years years 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 Present Value Present Value of Net Flows Factor 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 Net present value Based on net present value, which project is preferred?