Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. 2. 3. Siemens AG invests 82,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 16,400,000 per

1. image text in transcribed
image text in transcribed
2.
image text in transcribed
3.
image text in transcribed
Siemens AG invests 82,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 16,400,000 per year for the next 5 years. Assume the company requires an 10% rate of return from its investments. (PV of S1. EV of S1. PVA of $1 and EVA of $) (Use appropriate factorfs) from the tables provided) (1) What is the payback period of this investment? Payback Perlod Choose Denominator: | # | Payback Perl Payback period Choose Numerator: (2) What is the net present value of this investment? (Any losses or outflows should be entered with a minus sign.) Chart Values are Based on: Cash Flow Annual cash flow Select Chart Amount PV Factor Net present value Required information The following information applies to the questions displayed below, Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 6% return from its investments. nves Initial investment Expected net cash flovs in year $ (380,000) 135,000 130,000 103,000 Compute this investment's net present value. (PV of $1. FV of $1, PVA of $1, and EVA of $1) (Use appropriate factorts) from the tables provided. Round all present value factors to 4 decimal places.) Present Value Present Value Cash Flow 1 of 1 at 6% Year 1 Year 2 Year 3 Totals Amount invested Net present value A machine can be purchased for $220,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value. ea Net income $14,900 $36,900 $99,000 $55,700 $147,600 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow (220,000) S (220,000) $ 14,900 36,900 99,000 55,700 147,600 Payback period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions