ACME Corp. is evaluating two projects, Projects Gamma and Delta, with the following expected cash flows. The cost of capital is 15%.

Year	Project Gamma	Project Delta
0	($400,000)	($400,000)
1	100,000	120,000
2	150,000	140,000
3	200,000	160,000
4	250,000	180,000

Requirements:

1. Calculate the payback period for both projects.
2. Determine the NPV for each project.
3. Calculate the IRR for each project.
4. Identify which project should be accepted if only one can be chosen.
5. Analyze how the project's risk might affect the investment decision.