2. Scale differences: Project Gamma requires an outlay of $5,000 immediately. Project Gamma has a 1-year life and is expected to produce a net cash flow at the end of year one of $8,750. Project Sigma, a mutually-exclusive alternative to Gamma, requires an outlay of $10,000 immediately. It, too, is expected to have a 1-year life and to produce a net cash flow at the end of one year of $15,000. a. Compute the NPV of both projects using a cost of capital of 15 percent. b. Calculate the IRR of both projects. c. Which project should be undertaken? d. What is the incremental IRR? e. How would you analyze both investments using the incremental IRR