EASY Q

1. Ray Inc. is evaluating three mutually exclusive Generating value for shareholders is the primary project evaluating criteria for Ray Inc. However, as a second-order concern, they do look at project liquidity. Their cutoff payback period is 3 years. Given below are various outputs generated by the finance team regarding these three projects.

	Project 1	Project 2	Project 3
NPV	$3,350,000	$3,350,000	$3,000,000
Payback period	2.51 years	2.83 years	4 years

Group of answer choices

Project 1 only.

Project 1 and 2.

Project 2 only.

Project 1 and 3.