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.) 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? (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.) \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{1}{|c|}{ Net Cash Flows } & Present Value Factor & Present Value of Net Cash Flows \\ \hline Project 1 & & & \\ \hline Year 1 & $ & & \\ \hline Year 2 & & & \\ \hline Year 3 & & & \\ \hline Totals & & & \\ \hline Initial investment & & & \\ \hline Net present value & & & \\ \hline Project 2 & & & \\ \hline Year 1 & & & \\ \hline Year 2 & & & \\ \hline Year 3 & & & \\ \hline Totals & & & \\ \hline Initial investment & & & \\ \hline Net present value & & & \\ \hline Based on net present value, which project is preferred? & \\ \hline \end{tabular}