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 EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (1) What is the payback period of this investment? (2) What is the net present value of this investment? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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. Round your present value factor to 4 decimals.)
(1) What is the payback period of this investment?
(2) What is the net present value of this investment?
Complete this question by entering your answers in the tabs below.
Required 1 Required 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
Net present value
n=
¡=
< Required 1
Amount
%
PV Factor
Required 2 >
=
Present Value
Saved
€
€
0
0
Transcribed Image Text: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. Round your present value factor to 4 decimals.) (1) What is the payback period of this investment? (2) What is the net present value of this investment? Complete this question by entering your answers in the tabs below. Required 1 Required 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 Net present value n= ¡= < Required 1 Amount % PV Factor Required 2 > = Present Value Saved € € 0 0
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. EV of $1.
PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)
(1) What is the payback period of this investment?
(2) What is the net present value of this investment?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
What is the payback period of this investment?
Payback Period
Choose Numerator:
1
Choose Denominator:
< Required 1
Payback Period
= Payback period
Required 2 >
< Prev
3 of 11
Next >
Transcribed Image Text: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. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (1) What is the payback period of this investment? (2) What is the net present value of this investment? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the payback period of this investment? Payback Period Choose Numerator: 1 Choose Denominator: < Required 1 Payback Period = Payback period Required 2 > < Prev 3 of 11 Next >
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