2. Pigafetta made a PP1,000,000.00 investment in an endeavor whereby he manufactures products that are easily sold at P5,000.00 per unit. Per computation, the Payback Period is just two (2) years. If the total cost incurred by his company during a year is P2,100,000.00, a) What do you think is the number of products that his company was able to sell during the year? b) If his target is to attain a 15% Rate of Return, do you think that Pigafets has achieved his goal? Why?

2. Pigafetta made a PP1,000,000.00 investment in an endeavor whereby he manufactures products that are easily sold at P5,000.00 per unit. Per computation, the Payback Period is just two (2) years. If the total cost incurred by his company during a year is P2,100,000.00, a) What do you think is the number of products that his company was able to sell during the year? b) If his target is to attain a 15% Rate of Return, do you think that Pigafets has achieved his goal? Why?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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