Company DEF is dealing with capital rationing and is evaluating five investment projects with different risk profiles and budgets. The company's CFO has identified the risk-adjusted discount rates for each project to incorporate risk into the evaluation process. The data is as follows: Project Initial Investment Risk-Adjusted Discount Rate NPV P1 R800,000 12% R120,000 P2 R700,000 15% R90,000 P3 R600,000 18% R60,000 P4 R500,000 20% R40,000 P5 R400,000 25% R10,000 The company's budget allows for a maximum investment of $2,000,000. Based on the risk-adjusted NPV criterion, which projects should be chosen? Select one:

Projects P2, P3, and P4

Projects P1, P2, and P3

Projects P1, P2, and P4

All projects except for P3

Projects P1, P3, and P5