Net Cash Flows Project 2 Year Project 1 Initial investment $(44,000) 1. 2. 11,000 31,800 3. 20,000 $(76,000) 35,000 20,000 28,000 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 Compute payback period for each project. Based on payback period, which project is preferred? (Cumulative r outflows must be entered with a minus sign. Do not round your intermediate calculations. Round your Payback to 2 decimal places.) Compute payback period for each project. Based on payback period, which project is preferred= outflows must be entered with a minus sign. Do not round your intermediate calculations. Roun to 2 decimal places.) Project 1 Project 2 Cumulative Year Net Cash Flows Cumulative Net Cash Flows Net Cash Flows Net Cash Flows Initial investment $ (44,000) $ (76,000) 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 Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Net Cash Flows Present Value Factor Present Value of Net Cash Flows Initial investment Net present value Based on net present value, which project is preferred?