Show your work for both

1. ABC company is considering a new project. The cash flow data and WACC is given below. What is the company's discounted payback period.

WACC:10%Cash Flows: Year 0: -$1,000 Year 1: $525 Year 2: $485 Year 3: $445 Year 4: $405

2. BBB is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that BBB announces plans to lower its corporate taxes by borrowing $100 million and using the proceeds to repurchase shares. Suppose that BBB pays corporate taxes of 35% and shareholders expect the change in debt to be permanent.Provided that the capital markets are perfect except for the existence of corporate taxes and there are no significant financial distress costs incurred by BBB after issuing debt,the number of shares outstanding after the share repurchase is closest to: