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Lopez Company is considering three alternative investment projects below: Payback period Project 1 4.0 years Project 2 4.5 Years: Net present value $ 25,500
Lopez Company is considering three alternative investment projects below: Payback period Project 1 4.0 years Project 2 4.5 Years: Net present value $ 25,500 Internal rate of return 13.0 $ 32,500 11.9 Project 3. 3.7 Years $18,500 11.38 Which project is preferred if management makes its decision based on (a) payback period, (b) net present value, and (c) internal rate of return? a. Payback period b. Net present value c. Internal rate of return Preferred Investment Reason
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