Siemens AG invests €80 million to build a manufacturing plant to build wind turbines. The company predicts net cash flows of €16 million per year for the next eight years. Assume the company requires an 8% rate of return from its investments. 1. What is the payback period of this investment? 2. What is the net present value of this investment?
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Siemens AG invests €80 million to build a manufacturing plant to build wind turbines. The company
predicts net
8% rate of
1. What is the payback period of this investment?
2. What is the
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- Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?An investment requires an initial disbursement of €2,500,000 and the duration of the project is 3 years, in the first of which it generates a cash flow of €1,500,000, in the second € 3,700,000 and the third €4,100,000. Calculate the Net Present Value of the investment, knowing that inflation is 3% cumulative annually and that the required profitability in the absence of inflation is 8%. Calculate the actual internal rate of return of the previous investment.Schinhorn Inc. is investing £500,000 in a new project. The project will last four years. The net cash inflows from the project are expected to be £75,000 in year 1, £200,000 in year 2, £300,000 in year 3, and £350,000 in year 4. Assuming cash flows arise evenly through the year, what is the payback period of this investment? O 3 years O 3 years 6 months O 3 years 3 months O 2 years 9 months
- 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 11,945,600Siemens 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:. An investment requires an initial disbursement of € 2,500,000 and the duration of the project is 3 years, in the first of which it generates a cash flow of € 1,500,000, in the second € 3,700,000 and the third € 4,100,000. a) Calculate the Net Present Value of the investment, knowing that inflation is 3% cumulative annually and that the required profitability in the absence of inflation is 8%. b) Calculate the actual internal rate of return of the previous investment.
- Starwood Ltd is considering to invest in a new project. The project is expected to generate cash flows of $1,000 every four years forever with the first cash flow starting in year 2 and $4,000 every four years forever with the first cash flow starting in year 4. Suppose similar investments are paying a return of 10% p.a. compounded quarterly. How much should Starwood Ltd be prepared to pay for this project?Blue Plc is considering investing in a project. The project requires an initial investment of €200,000 and will yield cash inflows in years one to three of €135,000 per annum. The company’s cost of capital is 7%. What is the NPV of the project? €154,240 €354,240 €605,000 €205,000If An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm's cost of capital is 10 percent? a. What is the investment's internal rate return? Based on the net present rate return, should the firm makeinvestment? b.What is the investment's net present value? Based on the net present value, should the firm make the 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.) (1) What is the payback period of this investment? Choose Numerator: Cost of investment € Payback Period Choose Denominator: Annual net cash flow 80,000,000 € = Payback Period Payback period 5.00 years = 16,000,000 = Rectangular SnipIf an investment project costs a firm £200 and yields a stream of profits of £100 per year for the next three years what is the internal rate of return on the project?An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm’s cost of capital is 10 percent. a.) What is the investment’s internal rate of return? Based on the internalrate of return, should the firm make the investment? b.) What is the investment’s net present value? Based on the net presentvalue, should the firm make the investment?