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Gonzalez Company is considering two new projects with the following net cash flows. The companys...

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Accounting

Gonzalez Company is considering two new projects with the following net cash flows. The companys 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.

Year Net Cash Flows

Project $1$ Project $2$

Initial investment $ $(34, 000)$ $ $(86, 000)$ 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.

$\$ table $[[$ Year $,$ Project $1,$ Project $2], [\$ table $[[$ Net Cash $], [$ Flows $]], \$ table $[[$ Cumulative $], [$ Net Cash $], [$ Flows $]], \$ table $[[$ Net Cash $], [$ Flows $]], \$ table $[[$ Cumulative $], [$ Net Cash $], [$ Flows $]]], [$ Initial investment,$ $(34, 000),,$ $ $(86, 000),], [$ Year $1,,,,], [$ Year $2,,,,], [$ Year $3,,,,], [$ Payback period,,,, $], [$ Project $1$ Payback period,,years,, $], [$ Project $2$ Payback period,,years,, $], [$ Based on payback period, which project is preferred?,,,, $]]$

$1 . 8, 500 35, 000$

$2 . 22, 000 15, 000$

$3 . 12, 500 50, 000$

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