Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Time 0 1 2 3 4 567 6 7 Expected Net Cash Flows Project A Project B ($375) ($575) ($300) $190 ($200) $190 ($100) $190 $600 $190 $600 $190 $926 $190 ($200) $0 WACC = Project A Project B 12% Time period Cash flow Disc. cash flow Disc. cum. cash flow Discounted Payback Period 0 -$375 -$375 -$375 Time period 0 Cash flow -$575 Disc, cash flow -$575 -$575 Disc. cum. cash flow Pl of A: 1 -$300 -$268 -$643 Pl of B: 1 $190 $170 -$405 2 -$200 Discounted Payback Period f. What is the profitability index for each project if the cost of capital is 12%? 2 $190 3 -$100 3 $190 4 $600 4 $190 5 $600 5 $190 6 $926 6 $190 7 -$200 7 $0