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 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=¡=< Required 1Amount%PV FactorRequired 2 >=Present ValueSaved€€00 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 2What is the payback period of this investment?Payback PeriodChoose Numerator:1Choose Denominator:< Required 1Payback Period= Payback periodRequired 2 >< Prev3 of 11Next >

The term "payback time" refers to the amount of years needed to recoup the initial monetary outlay.…

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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8TP: Fenton, Inc., has established a new strategic plan that calls for new capital investment. The...

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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 Drenant value of noch inflown Present Value of 1 Future Value of 1 n= i = 91,945,600 91,945,600 80,000,000 11,945,600
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