Question 6 (NPV and Investment Criteria: 20 points) Delta Gamma Inc. is considering two investment projects, each of which requires an up-front expenditure (investment) of $50 million. The opportunity cost of capital is 10% for each project, and the investments will produce the following cash flows (in millions of dollars). Year Project Gamma Project Delta $5m 1 $30m 2 $25m $10m $20m 3 $10m 4 $50m $5m (a) What is the payback period for each project? (a) What is the NPV for each project? (b) What is the IRR for each project (Hint: You may use =IRR function in excel)? (c) If the projects are independent and the cost of capital is 10%, which project or projects should the firm undertake? (d) If the projects are now mutually exclusive and the cost of capital is 5%, which project or projects should the firm undertake? Why? (e) If the projects are mutually exclusive and the cost of capital is 15%, which project or projects should the firm undertake? Why