Q4. (Required A+ B)
Q5.
will upvote :)
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) Note: Use appropriate factor(s) from the tables provided. 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? 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. Compute payback period for each project. Based on payback period, which project is preferred? Note: 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. Complete this question by entering your answers in the tabs below. Compute net present value for each project. Based on net present value, which project is preferred? Note: Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar. Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $127,400. Project 2 requires an initial investment of $92,700. Assume the company requires a 10% rate of return on its investments. (PV of $1,FV of \$1. PVA of \$1, and EVA of \$1) Note: Use appropriate factor(s) from the tables provided. Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. Note: Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar