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Need BOLD areas answered. Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net...

Need BOLD areas answered.

Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:
Expected Net Cash Flows
Time Project A Project B
0 ($375) ($575)
1 ($300) $190
2 ($200) $190
3 ($100) $190
4 $600 $190
5 $600 $190
6 $926 $190
7 ($200) $0
f.   What is the regular payback period for these two projects?
Project A
Time period 0 1 2 3 4 5 6 7
Cash flow (375) (300) (200) (100) 600 $600 $926 ($200)
Cumulative cash flow -$375 -$675 -$875 -$975 -$375 $225 $1,151 $951
Intermediate calculation for payback
Payback using intermediate calculations 4.625
Project B
Time period 0 1 2 3 4 5 6 7
Cash flow -$575 $190 $190 $190 $190 $190 $190 $0
Cumulative cash flow -$575 -$385 -$195 -$5 $185 $375 $565 $565
Intermediate calculation for payback
Payback using intermediate calculations 3.026
g.    At a cost of capital of 12%, what is the discounted payback period for these two projects?
WACC   = 12%
Project A
Time period 0 1 2 3 4 5 6 7
Cash flow -$375 -$300 -$200 -$100 $600 $600 $926 -$200
Disc. cash flow -$375 -$268 -$159 -$71 $381 $340 $469 -$90
Disc. cum. cash flow -$375 -$643 -$802 -$873 -$492 -$152 $317 $227
Intermediate calculation for payback
Payback using intermediate calculations 5.400
Project B
Time period 0 1 2 3 4 5 6 7
Cash flow -$575 $190 $190 $190 $190 $190 $190 $0
Disc. cash flow -$575 $170 $151 $135 $121 $108 $96 $0
Disc. cum. cash flow -$575 -$405 -$254 -$119 $2 $110 $206 $206
Intermediate calculation for payback
Payback using intermediate calculation
Discounted Payback using PERCENTRANK Ok because cash flows follow normal pattern.
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Answer #1

g.A

Time period: 0 1 2 3 4 5 6 7
Cash flow: (375) (300) (200) (100) 600 $600 $926 ($200)
Disc. cash flow: (375) (268) (159) (71) 381 340 469 (90)
Disc. cum. cash flow: (375) (643) (802) (873) (492) (152) 317 227
% of year required for payback: 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 32.4000
Discounted Payback: 5.32 yrs
Time period: 0 1 2 3 4 5 6 7
Cash flow: (575) 190 190 190 190 $190 $190 $0
Disc. cash flow: (575) 170 151 135 121 108 96 0
Disc. cum. cash flow: (575) (405) (254) (119) 2 110 206 206
% of year required for payback: 100.0000 100.0000 100.0000 100.0000 98.3000
Discounted Payback: 3.98 yrs
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