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 $(42,000) $(78,000) 1. 10,500 35,000 2. 27,800 15, eee 3. 18,5ee 35,00 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? DO Complete this question by entering your answers in the tabs below. Required A Required B narind which are narrativa 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 Cumulative Cumulative Net Net Cash Net Cash Flows Net Cash Cash Flows Flows Flows Initial investment $ (42.000) (42000) 5 (78,000) Year 1 10,500 31.500 0 Year 2 27.800 Year 3 18,500 0 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? years years Required B > $ $ Compute net present value for each project. Based on net present value, which project is preferred? (Round your 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 $ 0 0 Initial investment Net present value $ 0 Project 2 Year 1 Year 2 Year 3 Totals 0 $ 0 Initial investment 0 Net present value Based on net present value, which project is preferred? $ $