(Solution) - Siemens AG invests 80 million to build a manufacturing plant -(2025 Original AI-Free Solution)

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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 8 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?