Question: Siemens AG invests 80,000,000 Saved Help Spve & Ext SU Siemens AG invests 80,000,000 to build a manufacturing plant to build wind turbines. The company

Siemens AG invests 80,000,000 Siemens AG invests 80,000,000 Saved Help Spve & Ext SU Siemens AG

Saved Help Spve & Ext SU 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 $ 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? 33 Complete this question by entering your answers in the tabs below. Required: 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: % Select Chart Amount * PV Factor Cash Flow Annual cash flow Present Value 0 0 Not present value Prey 1 of 11 !!! Next >

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!