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? Choose Numerator: Cost of investment € 1 Payback Period Choose Denominator: Annual net cash flow 80,000,000 € = Payback Period =Payback period 5.00 years 16,000,000 =

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? Choose Numerator: Cost of investment € 1 Payback Period Choose Denominator: Annual net cash flow 80,000,000 € = Payback Period =Payback period 5.00 years 16,000,000 =

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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