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 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 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 Ces 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 Initial investment Net Cash Flows $ (60,000) Cumulative Net Cash Net Cash Flows Flows Cumulative Net Cash Flows $ (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 Required A Required B Compute net present value for each project. Based on net present value, which project is preferred? value factor to 4 decimals. Round your final answers to the nearest whole dollar.) 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 Net Cash Flows Present Value Factor Present Value of Net Cash Flows Based on net present value, which project is preferred?