Siemens AG invests 86,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 17,200,000 per year for the next 5 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? Answer is complete and correct. Payback Period Choose Denominator Payback Period Choose Numerator: Annual net cash fow 17,200,000 Cost of investment Payback period years 86,000,000 5.00 (2) What is the net present value of this imvestment? (Amy losses or outflows should be entered with a minus sign.) Answer is complete but not entirely correct. Chart Values are Based on: n s 8% e Present Value PV Factor Amount Select Chart Cash Flow Present Value of an Annuity of Annual cash E 68.674,440 3.9927 17.200.000 1 flow 68.674.440 86,000,000 Present value of cash inflows Less: Amount to be invested e 17,325.560 Net present value Required information (The following information applies to the questions displayed below] Park Co. is considering an investment that requires immediate payment of $25,359 and provides expected cash inflows of $8,000 annually for four years. Park Co. requires a 8% return on its investments. 1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tobles provided. Round your present value factor to 4 decimeals.) Present value factor Internal rate of return Required information (The following information applies to the questions displayed below Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $52,200 and has an estimated $11,700 salvage value. Assume Peng requires a 10 % return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Cash Flow Select Chart PV Present Value Amount Factor Annual cash fow Present Value of an Annuity of 0.0000 S 0 Residual value Present Value of 1 0.0000 0 Present value of cash inflows Immediate cash outfows Net present value 0x TABLE B.1 p 1/(1+i Present Value of 1 Rate 12% 15% 2% 3% 4% 7% 8% 9% 10% Perlods 1% 5% 6% 0.8929 0.8696 0.9901 0.9804 0.9709 0.9615 0.9346 0.9259 0.9174 0.9091 0.9524 0.9434 0.9803 0.7561 2 0.9612 0.9426 0.8573 0.7938 0.8417 0.8264 0.7972 0.9246 0.9070 0.8900 0.8734 0.8 38 0.7513 0.7118 0.6575 3 0.9706 0.9423 0.9151 0.8890 0.8396 0.8163 0.7722 4 0.6355 0.5718 0.4972 0.9610 0.9238 0.8885 0.8548 0.7350 0.7084 0.6830 0.8227 07921 0.7629 0.9515 0.9057 0.8626 0.8219 0.6499 0.6209 0.5674 0.7835 0.7473 0.7130 0.6806 0.9420 0.8880 0.8375 0.8131 0.7462 0.7050 0.5963 0.5645 0.5066 0.4323 0.7903 0.6663 0.6302 0.9327 0.8706 0.5132 0.4523 0.3759 0.7599 0.7107 0,6651 0.6227 0.5835 0.5470 0.9235 0.8535 0.7894 0.4665 0.4039 0.3269 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 43 68 0.7664 0.6446 0.5919 0.5439 0.2843 0.7026 0.5002 0.4604 0.4241 0.3606 1C 0.9053 0.8203 07441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.3505 0.2875 0.2149 05268 0.4751 0.4289 0.3875 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3555 0.2567 0.1869 0.3971 0.3186 13 0.8787 0.7730 0.6810 0.6006 0.5303 0 4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 14 0.8700 0.7579 0.6611 0.5775 0.4423 0.5051 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3387 0.2919 0.3936 0.2519 0.2176 0.1631 0.1069 17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 0.0929 18 0.8360 0.7002 0.5874 0.4936 0.4155 03503 0.2959 0.2502 0.2120 0.1799 0.0808 0.1300 0.8277 19 0.5703 0.6730 0.5537 0.6095 0.6864 0.2765 0.4746 0.3957 0.3305 0.2317 0.1945 0.1635 0.1161 00703 20 0.8195 0.3769 0.4564 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 25 0.7798 0.4776 0.3751 0.2953 0.2330 0.1460 0.1842 0.1160 00923 0.0588 0.0304 30 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0,0754 0.0676 0.0490 0.0994 0.0573 0.0334 0.0151 35 0.7059 06717 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0.0356 0.0189 0.0075 40 0.4529 0.3066 0.2083 0.1420 0.0972 0,0668 0.0460 0.0318 0.0221 0.0107 0.0037 Used to compue the present value of a known futune amount, For example How much would you need to invest today at 10% compounded semianaly to accumulate $5000 in 6 vears from tody? Using the factors ofn12 and im5% (12 semianual periods and a semiannual rate of 5%), the factor is 0.5568 You would reed to invest $2.7s4 today (55.000x 0.5568). TABLE B.2 f= (1+i Future Value of 1 Rate 10% 12% 15% 8% 9% 3% 4% 5% 6% 7% Perlods 1% 2% 1.0000 1.0000 1.0000 1.0000 10000 1,0000 1.0000 1.0000 1.0000 1.0000 1.0000 0 1.0000 1.1500 1,0500 1.0800 1.1000 1.1200 1.2544 1.0300 1,0400 1.0600 1.0700 1.0900 1.1881 1 1.0100 10201 1.0200 1.3225 1.2100 10404 1.0609 1.0816 1.1025 1.1236 1,1449 1.1664 1,4049 1,5209 1.1576 1.2950 1,3310 1.0303 1.0612 1.0927 1.1249 1.1910 1.2250 1.2597 1.4641 1.5735 1.7490 1.0406 1.0824 1.1255 1.2625 1.3605 1,4116 4 1.1699 1.2155 1.3108 5 2.0114 1.0510 1.6105 1.7623 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.0615 1.7716 1.9738 2.3131 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1,6771 7 1.0721 1.0829 1.1487 1.1717 1.2299 1.9487 2.2107 2.6600 3.0590 1.3159 14071 1.4775 1.5036 1.5938 1.6058 1.7138 18509 1.9926 1.8280 8 1.2668 1.3686 1.7182 2.1436 2.4760 9 1.0937 1.1046 1.1951 2.7731 3.5179 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3674 2.3579 10 1.2190 1.3439 1.4802 1.6289 2.1589 2.5937 3.1058 4.0456 1.7908 1.9672 11 1.1157 1.3842 1.2434 1.5395 1.6010 1.6651 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.4785 4.6524 12 13 1.4258 1.1268 1.2682 2.0122 1.7959 2.2522 2.4098 25785 2.7590 31722 36425 2.9522 3.4259 3.9703 4.5950 2.5182 2.7196 3.0658 2.9372 2.8127 3.1384 3.8960 4.3635 5.3503 1.1381 1.2936 1.3195 1.3459 1.3728 1.4685 1.8856 1.9799 2.1329 3.4523 6.1528 14 1.1495 1.1610 1.1726 1.5126 1.7317 2.2609 2.3966 2.5404 3.3417 3.7975 4.8871 70757 15 1.5580 1.6047 1.8009 1.8730 2.0789 2.1829 2.2920 4.1772 5.4736 8.1371 16 6.1304 6.8660 9.3576 17 1.1843 1.4002 1.6528 1.9479 2.0258 2.6928 4.3276 2.8543 3.3799 3.9960 4.71711 3.1588 3.7000 5.0545 10.7613 18 1.1961 1.4282 1.7024 2.4066 55599 7.6900 12.3755 19 1.2081 1.2202 1.4568 1.7535 2.1068 3.0256 2.1911 2.6533 3.2071 3.8697 2.5270 3.6165 4.3157 5.1417 6.1159 8.6128 14.2318 20 1.4859 18061 4.6610 5.6044 6.7275 9.6463 16.3665 25 1.2824 2.6658 1.6406 2.0938 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 13.2677 14.7853 20.4140 17.0001 32.9190 30 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 76123 10.0627 17.4494 66.2118 29.9599 35 3.9461 4 8010 1.4166 1.9999 2.8139 5.5160 7.6861 10.6766 28.1024 52.7996 133.1755 40 1.4889 2.2080 3.2620 7.0400 10.2857 14.9745 21.7245 31,4094 45.2593 93.0510 267.8635 Used to compute the future value of a known present amount. For example: What is the accumulated value of 53,000 invested today at 8% compounded quarteth for S years? Usings the factors ofn 20 and i 2% (20 quarterly periods and a quarterly interest rae of 29), the factor is 1.4859. The accumulated value is S4.457.70 (S3000 x 1 4859) 2 TABLE B.3 + i) Present Value of an Annuity of 1 Rate Perlods 1% 2% 3% 4% 5% 8% 9% 10% 12% 15% 6% 7% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 09346 0.9259 0.9174 0.9091 0.8929 0.8696 1.9704 1.9135 1.9416 1.8861 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.6901 1.6257 3 2.9410 2.8839 28286 2.7751 2.7232 26730 26243 25771 2.5313 2.4869 2.4018 2.2832 3.9020 3.8077 3.7171 3.6299 4.4518 3.3872 3.5460 3.4651 3.3121 3.2397 3.1699 3.0373 2.8550 48534 4.7135 3.6048 4.5797 4.3295 5.0757 4.2124 4.1002 3.9927 3.8897 3.7908 33522 6 5.7955 5.6014 5.4172 5.2421 49173 47665 4.6229 4.4859 4,3553 4.1114 3.7845 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5,0330 4.8684 4.5638 4.1604 7,6517 7.3255 7.0197 86 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 9 8.5660 8.1622 4353 7.1078 6.8017 65152 6.2469 5.9952 5.7590 5.3282 4.7716 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 11 12 10.3676 11.2551 9.7868 9.2526 7.8969 8.3838 7.1300 75361 8.7605 8.3064 74987 6.8052 7.1607 6.4951 5.9377 5.2337 10.5753 9.9540 10.6350 9.3851 8.8633 7.9427 6.8137 6.1944 5.4206 13 12.1337 11.3484 9.9856 9.393 8.8527 8.3577 8.7455 7.4869 7.9038 7.1034 6.4235 5.5831 14 13.0037 12.1062 11.2961 10.5631 9.8986 92950 8.2442 7.7862 7.3667 66282 5.7245 15 13.8651 12.8493 11.9379 11.1184 10.3797 97122 9.1079 8.5595 8.0607 7.6061 7.8237 6.8109 5.8474 16 147179 13.5777 14.2919 12.5611 11.6523 10.8378 12.1657 11.2741 10.4773 10.1059 9.4466 8.8514 9.1216 8.3126 69740 5.9542 17 15.5623 13.1661 9.7632 8.5436 8.0216 7.1196 6,0472 18 16.3983 14.9920 13.7535 126593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 72497 6.1280 19 17.2260 15.6785 14.3238 16.3514 148775 13.1339 12.0853 13.5903 12 4622 114609 10.5940 15.6221 14.0939 17.2920 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 20 18.0456 9.8181 9.1285 9.8226 90770 11.2578 10.2737 9.4269 8.5136 7.4694 7.8431 6.2593 25 19.5235 22.3965 24.9986 27.3555 22.0232 17.4131 19.6004 21.4872 12.7834 11.6536 10.6748 6.4641 6.5660 30 25.8077 15.3725 137648 12.4090 8.0552 35 40 29.4086 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 32.8347 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 97791 8.2438 66418 Used to calulate the prew value of a seres of aual payments made at the end of each perid For esample What is the present vale of $2000 per year o a aual irrest ree of 9 For ie 10.n 9) the PV fackr i 64171 52.000 per yer for 10yearsi the egsalet of $1285 koda (52.0o064177) 10 years assuming TABLE B.4 f=[1 +i-1yi Future Value of an Annuity of 1 Rate Perlods 1% 2% 3% 4 % 5% 6% 7% 8% 9% 10% 12% 15% 1,0000 10000 1.0000 1.0000 1.0000 10000 1.0000 1.0000 1.0000 1.0000 1,0000 1.0000 2 2.0100 2.0200 2.0300 2,0400 2.0500 2.0600 2.0700 2.0800 20900 2.1000 2.1200 2.1500 3.0301 3 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 32781 3.3100 4.6410 3.3744 3.4725 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 45731 4.7793 4.9934 5.1010 5.2040 5.3091 5.4163 5 8666 5.5256 5.6371 5.7507 5.9847 6.1051 6.3528 6.7424 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 75233 7.7156 8.7537 8.1152 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10,0890 11.0668 8.2857 9.3685 8.5830 9.7546 8.8923 9.2142 10.5828 9.5491 11.0266 9.8975 10.2598 10.6366 12.4876 11.0285 11.4359 13.5795 12.2997 13.7268 10.1591 11.4913 11.9780 13.8164 13.0210 14.7757 16.7858 10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 14.4866 15.1929 15.9374 17.5487 20.3037 11 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 166455 17.5603 20.6546 18.5312 24.3493 12 126825 13 14,1920 14.6803 15.6178 121 15.0258 15.9171 16.8699 18.8821 17.8885 18.9771 20.1407 21.3843 24.1331 29.0017 13 13.8093 14.9474 16.6268 17.7130 19.5986 20.1406 21.4953 22.9534 24.5227 27.9750 28.0291 34.3519 40.5047 14 15.9739 17.0863 18.2919 20.0236 21.0151 22.5505 23.2760 25.1290 24.2149 26.0192 32.3926 15 16.0969 17.2579 18.4304 17.2934 18.5989 21.5786 27.1521 29.3609 37.2797 31.7725 475804 16 18.6393 20.1569 21.8245 23.6575 25.6725 27 8881 30.8402 33.9990 37.3790 33.0660 36.7856 40.9955 45.7620 30.3243 33.0034 36.9737 35.9497 42.7533 55.7175 17 20.0121 21.7616 21.4123 20.8109 228406 25.1169 23.6975 25.8404 28.2129 33.7502 40.5447 48.8837 65.0751 18 19 19.6147 23.4144 25.6454 28.1324 30.5390 30.9057 33.7600 37.4502 41.4463 41.3013 46.0185 51.1601 45.5992 51.1591 55.7497 758364 27.6712 63.4397 72.0524 84.7009 98.3471 133.3339 88.2118 20 220190 24 2974 26.8704 29.7781 57.2750 102.4436 212 7930 25 28 2432 32.0303 36.4593 41.6459 47.7271 54.8645 63.2490 73.1059 30 347849 41.6603 48 8864 40.5681 475754 113.2832 136.3075 164 4940 215.7108 27/1.0244 337.8824 56.0849 23 6522 66.4388 79.0582 94.4608 241 3327 431.6635 767.0914 434.7451 35 49.9945 60.4621 90.3203 1114348 1382369 172 3168 881.1702 1,779.0903 40 60 4020 75.4013 95.0255 120.7998 154.7620 199.6351 259.0565 442.5926 Used to calculate the futare valse of a series of oqual payments made at the end of cach period For esample What is the future value of 54.000 per year for 6 years auming an annual interest rate of 8For (n6,/8% the FV fctor is 7.3359, 54.000 per year for 6 years accumulates to 5293430 (S4.00x7.3359