Lopez Company is considering three alternative investment projects below: Payback period Net present value $ 25,000 Internal rate of return Project 1 3.5 years 12.5% Project 2 4.0 Years $ 32,000 Project 3 3.2 Years $ 18,000 11.4% 10.8% 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