Lopez Company is considering three alternative investment projects below: Payback period Project 1 4.1 years Project 2 4.6 Years Project 3 3.8 Years Net present value $ 25,600 $ 32,600 $ 18,600 Internal rate of return 13.1% 12.0% 11.4% Which project is preferred if management makes its decision based on (a) payback period, (b) net present value, and (c) internal rate of return? Preferred Investment Reason a Payback period b. Net present value. ences c Internal rate of retum