Gonzalez Company is considering two new projects with the following net cash flows. The companys required rate of return on investments is PV of $ FV of $ PVA of $ and FVA of $
Note: Use appropriate factors from the tables provided.
Year Net Cash Flows
Project Project
Initial investment $ $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 decimal places.
tableYearProject Project tableNet CashFlowstableCumulativeNet CashFlowstableNet CashFlowstableCumulativeNet CashFlowsInitial investment,$$Year Year Year Payback period,,,,Project Payback period,,years,,Project Payback period,,years,,Based on payback period, which project is preferred?,,,,
