Berry Company is considering a project that has the following cash flow and WACC

data.

(1) What is the project's Payback Period?

(2) What is the project's Discounted Payback Period?

WACC:8.00%

Year 0 1 2 3 4 5

Cash flows -$1,000 $400 $390 $380 $370 $360

Can you show this in EXCEL and how you calculate it?

For example:

Excel Formula 1 Solution 3 1. Calculatii PV value PV rate Fear Cash flow 6 0 -1000 -1/(1+14.50%) A6 EB6 Co 71 300 -1/ 1+14.5%YAT B7 C7 82 300 -1/ 1+14.50%NAS EBS C8 9 3 300 -1/ 1+14.5% A9 EBS C9 -1/ 1+14.50%AA10 EB10 C10 300 10 4 115 300 -1/ 1-14.5% A11 B11 C11 12 NPV 13 14 2. Calculatii 16 Year Cash flow -1575 17 0 400 18 1 400 19 2 400 20 3 400 21 4 22 23 IRR 24