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 Flows Year Project 1 Initial investment $(60,000) 1. 15,000 2. 3. 27,400 22,000 Project 2 $(55,500) 35,000 15,000 22,000 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 outflow must be entered with a minus sign. Do not round your intermediate calculations. Round your Payback Period answer to 2 dreimal places.) Project 1 Project 2 Year Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Cumulative Net Cash Flows Initial investment $ (60,000) $ (55,500) Year 1 Year 2 Year 3 Payback period Project 1 Payback period years Project 2 Payback period years Based on payback period, which project is preferred?