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Ray Inc. is evaluating three mutually exclusive projects. Generating value for shareholders is the primary...

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Ray Inc. is evaluating three mutually exclusive projects. Generating value for shareholders is the primary project evaluating criteria for Ray Inc. However, as a second-order concern, they do look at the internal return of the projects. WACC of the firm is 15%. Given below are various outputs generated by the finance team regarding these three projects. Project 1 Project 2 Project 3 NPV $2,500,000 $2,500,000 $1,500,000 18% 20% 25% Which project(s) should Ray Inc. select? None of the projects should be selected. 0 Project 2 Project 1 Project 3

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