2. A fixed capital investment of P10, 000,000.00 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000.00. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment and the payout period if the annual profit is P2,500,000.00.
2. A fixed capital investment of P10, 000,000.00 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000.00. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment and the payout period if the annual profit is P2,500,000.00.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:2. A fixed capital investment of P10, 000,000.00 is required for a proposed manufacturing
plant and an estimated working capital of P2,000,000.00. Annual depreciation is estimated to
be 10% of the fixed capital investment. Determine the rate of return on the total investment
and the payout period if the annual profit is P2,500,000.00.
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