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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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