Homework: Time Value of Money and CVP Analysis A... Saved Help Save & Exit Submit Check my work 4 2 Net Cash Flows Year Project 1 Project 2 Initial investment (000 '09) $ $ (55, 500) 1. 15, 000 35, 000 2 . 27,400 15, 090 3 . 22, 000 22, 000 4 points 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? eBook Complete this question by entering your answers in the tabs below. Print References 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 Flows Cumulative Net Net Cash Cumulative Cash Flows Flows Net Cash Flows Initial investment |$ (60,000) (55,500) 15,000 35,000 2 27,400 15,000 22,000 12,000 Payback period Project 1 Payback period years Project 2 Payback period years Based on payback period, which project is preferred? Project 2 Graw