Gonzalez Company is considering two new projects with the following net cash flows. The companys 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.)

Year	Net Cash Flows
	Project 1	Project 2
Initial investment	$(60,000)	$(58,000)
1.	15,000	35,000
2.	33,300	20,000
3.	19,500	20,000

a. Compute payback period for each project. Based on payback period, which project is preferred? (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.)

b. Compute net present value for each project. Based on net present value, which project is preferred? (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.)