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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...

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