Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Siemens AG invests 80,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 16,000,000 per year for the
Siemens AG invests 80,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 16,000,000 per year for the next 8 years. Assume the company requires an 8% rate of return from its investments (PV of $1. FV of $1, PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) (1) What is the payback period of this investment? Payback Period Choose Denominator: Choose Numerator: = Payback Period = Payback period (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: Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow Net present value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started