provide answers and excel formula used.

At a cost of capital of 12%, what is the discounted payback period for these two projects?

WACC = 12%

1 2 0 (375) 4 600 3 (100) 5 $600 6 $926 (300) (200) 7 ($200) Project A Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations 1 2 3 7 0 (575) 5 190 6 190 190 190 190 190 0 Project B Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations