For a new investment decision, consider the following projects:

• Project Gamma
  • Initial Investment: $200,000
  • Year 1: $70,000
  • Year 2: $80,000
  • Year 3: $90,000
  • IRR: 19%
• Project Delta
  • Initial Investment: $150,000
  • Year 1: $50,000
  • Year 2: $60,000
  • Year 3: $70,000
  • IRR: 17%

The discount rate is 15%.

a) Calculate the NPV for both projects.

b) Determine which project to invest in based on NPV.

c) Evaluate the effect of the IRR on the investment decision.

d) Explain why NPV is a more comprehensive evaluation method than IRR.