6. A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000. Annual depreciationn 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. MENTREV Ans. 12.50%, 4.8 years SO

6. A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000. Annual depreciationn 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. MENTREV Ans. 12.50%, 4.8 years SO

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6.3

6. A fixed capital investment of P10,000,000 is required for a
proposed manufacturing plant and an estimated working capital of
P2,000,000. Annual depreciationn 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.
THENTREV
ura 30 37
Ans. 12.50%, 4.8 years
CONTEM

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