Hh1.Account Exercise 26-9 (Static) Payback period; net present value; unequal cash flows LO P1, P3Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return oninvestments is 10%. (PV of $1. EV of $1. PVA of $1, and EVA of $1)Note: Use appropriate factor(s) from the tables provided.YearInitial investment1.2.3.Net Cash FlowsYearProject 1$ (60,000)30,00030,0005,000a. 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.Initial investmentYear 1Year 2Required A Required BCompute 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. Roundyour Payback Period answer to 2 decimal places.Project 2$ (60,000)35,00020,00020,000Project 1Net CashFlows$ (60,000)30,000CumulativeNet CashFlowsProject 2Net CashFlows$(60,000)CumulativeNet CashFlows0 Required A Required BCompute payback period for each project. Based of payback period, which project is preferred?Note: Cumulative net cash outflows must be entered with a minus sign. Do not round your intermediate calculations. Roundyour Payback Period answer to 2 decimal places.YearInitial investmentYear 1Year 2Year 3Show Transcribed TextRequired A Required BPayback periodProject 1 Payback periodProject 2 Payback periodBased on payback period, which project is preferred?Net CashFlowsProject 1Year 1Year 2Year 3TotalsInitial investmentNet present valueProject 2$ (60.000)30,000$Net CashFlowsProject 1$Complete this question by entering your answers in the tabs below.CumulativeNet CashFlows0Show Transcribed TextCompute net present value for each project. Based on net present value, which project is preferred?Note: Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.Year 1Year 2Year 3TotalsInitial investmentNet present valueBased on net present value, which project is preferred?0Present ValueFactor(Required A4$$Project 2Net CashFlows$(60,000)yearsyears$Present Value of NetCash Flows$CumulativeNet CashFlowsĆ000

Name: Hh1.Account Exercise 26-9 (Static) Payback period; net present value;
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: Hh1.Account Exercise 26-9 (Static) Payback period; net present value; unequal cash flows LO P1, P3Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return oninvestments is 10%. (PV of $