A fixed capital investment of P 10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P 2,000,000.00 . Annual depreciation is estimated to be 10% of the fixed capital investment . Determine the rate of return on the total investment and the minimum pay out period if the annual profit is P 2,500,000.00 .

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter17: Long-term Investment Analysis
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A fixed capital investment of P 10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P 2,000,000.00 . Annual depreciation is estimated to be 10% of the fixed capital investment . Determine the rate of return on the total investment and the minimum pay out period if the annual profit is P 2,500,000.00 .

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