Lopez Company is considering three alternative investment projects below: Project 1 Project 2 Project 3 Payback period 3.5 years 4.0 Years 3.2 YearsNet present value $ 25,000 $ 32,000 $ 18,000 Internal rate of return 12.5% 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? Preferred Investment Reason a. Payback period b. Net present value c. Internal rate of return