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) Note: Use appropriate factor(s) from the tables provided. Net Cash Flows Year Project 1 Project 2 Initial investment $ (34,000) $ (86,000) 1. 8,500 35,000 2. 3. 15,000 50,000 22,000 12,500 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? Note: Cumulative net cash outflows must be entered with a minus sign. Do not round your intermediate calcu your Payback Period answer to 2 decimal places. Initial investment Year 1 Project 1 Project 2 Year Cumulative Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Net Cash Flows (34,000) 8,500 (34,000) $ (86,000) $ (86,000) 35,000 Year 2 Year 3 0 0 Payback period Project 1 Payback period Project 2 Payback period years years Based on payback period, which project is preferred? < Required A Required B > Required A Required B Compute net present value for each project. Based on net present value, which pro Note: Round your present value factor to 4 decimals. Round your final answers to 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