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.) Net Cash Flows Year Project 1 Project 2 Initial investment $(60,000) $(59,000) 15,000 35,000 2. 30,200 20,000 3. 18,500 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? 1. Answer is not complete. 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 Net Cash Cumulative Cumulative Net Cash Net Cash Flows Net Cash Flows Flows Flows Initial investment $ (60,000) IS (60,000) $ (59,000) $ (60,000) Year 1 15,000 (45,000) 13,636 13,636 Year 2 30,200 (14,800) 24,958 X Year 3 3,700 13,899X Payback period Project 1 Payback period 2.80 years Project 2 Payback period 2.20l years Based on payback period, which project is preferred? Project 2 +8.500 RELEA Required B > 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 Project 2 Initial investment $(60,000) $(59,000) 1. 15,000 35,000 2. 30,200 20,000 3. 18,500 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? Answer is not complete 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.) Present Value of Net Cash Flows 0 0 Net Cash Present Value Flows Factor Project 1 Year 1 $ (60,000) Year 2 15,000 Year 3 30,200X Totals S (14,800) Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals $ 0 Initial investment Net present value Based on not present value, which project is preferred? $ 0 $ 0