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 1Required 2What is the payback period of this investment?Payback PeriodChoose Numerator:11Choose Denominator:< Required 1< Prev= Payback PeriodPayback period3 of 11Required 2 >‒‒‒wwwNext > PVA of $1, and FVA of $1) (Use appropria(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 1Required 2What 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 FlowAnnual cash flowSelect ChartNet present valuen =j=< Required 1< PrevAmount3 of 11%x PV Factor=Required 2 >‒‒‒‒‒‒T=Next************Present Value

The discounted payback period refers to the period or the number of years in which the periodic cash…

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?

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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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 payback period of this investment?
Payback Period
Choose Numerator:
1
1
Choose Denominator:
< Required 1
< Prev
= Payback Period
Payback period
3 of 11
Required 2 >
‒‒‒
www
Next >

PVA of $1, and FVA of $1) (Use appropria
(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 =
j=
< Required 1
< Prev
Amount
3 of 11
%
x PV Factor
=
Required 2 >
‒‒‒
‒‒‒
T
=
Next
************
Present Value

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