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...

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 Delta   Project Gamma
1       $5m                    $30m
2       $10m                  $25m
3       $20m                  $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?