Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Time 0 2 1 2 3 4 5 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 a. At a cost of capital of 12%, what is the discounted payback period for these two projects? WACC = 12% 0 1 2 3 4 5 6 7 Project A Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations 0 1 2 3 4 5 6 7 Project B Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations b. What is the profitability index for each project if the cost of capital is 12%? PV of future cash flows for A: PI of A: PV of future cash flows for B: PI of B