16 Exercise 24-9 (Algo) Payback period; net present value; unequal cash flows LO P1, P3 10 points 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.) Year Net Cash Flows Project 2 Project 1 Initial investment $(48,000) Skipped 1. 12,000 2. 3. 29,700 21,000 eBook References $(72,000) 35,000 20,000 25,000 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 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.) Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Initial investment Net Cash Flows Present Value Factor Present Value of Net Cash Flows $ 0 $ 0 $ 0 $ 0 $ 0 Net present value Based on net present value, which project is preferred? $ 0 < Required A Required B >