A new factory would require a fixed and variable production costs of 2000000000 $. It is estimated that variable costs of production will amount to 30% of the cash cost of production, and annual depreciation costs are estimated to be 8 % of the fixed and variable production. If the annual profit is going to be 900000 $ million, determine the quality percent return on the entire cost and the minimum payout period.
A new factory would require a fixed and variable production costs of 2000000000 $. It is estimated that variable costs of production will amount to 30% of the cash cost of production, and annual depreciation costs are estimated to be 8 % of the fixed and variable production. If the annual profit is going to be 900000 $ million, determine the quality percent return on the entire cost and the minimum payout period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![A new factory would require a fixed and variable production costs of
2000000000 $. It is estimated that variable costs of production will
amount to 30% of the cash cost of production, and annual depreciation
costs are estimated to be 8 % of the fixed and variable production. If
the annual profit is going to be 900000 $ million, determine the
quality percent return on the entire cost and the minimum payout
period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd50b2616-b9c7-4329-bd2e-97fb17b9dea7%2Fcf596579-9fce-4b4e-af71-e3d6cd6aaaf1%2F8wzi4u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A new factory would require a fixed and variable production costs of
2000000000 $. It is estimated that variable costs of production will
amount to 30% of the cash cost of production, and annual depreciation
costs are estimated to be 8 % of the fixed and variable production. If
the annual profit is going to be 900000 $ million, determine the
quality percent return on the entire cost and the minimum payout
period.
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