a$.$ Compute payback period for each project. Based on payback period, which project is preferred

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 SI FV of SI PVA of SI and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Initial investment Project I $(32, a) 8, aaa 22, saa 11,aa Project 2 $ (88, a) 35, aaa 20, aa 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 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 Cumulative Net Project 2 Year Initial investment Year 1 Year 2 Year 3 pe Project 1 Payback period Project 2 Payback period Net Cash Flows Net Cash Flows (88,000) years years Cumulative Net Cash Cash Flows s (32,000) Based on payback period, which project is preferred?