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Siemens AG invests 94,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 18,800,000 per year for the
Siemens AG invests 94,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of 18,800,000 per year for the next 5 years. Assume the company requires an 10% 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 Numerator: 1 Choose Denominator: 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: n = i= Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow 0 Net present value
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