A new factory would require a fixed and variable production costs of 325500000 $. It is estimated that variable costs of production will amount to 21% of the cash cost of production, and annual depreciation costs are estimated to be 12% of the fixed and variable production. If the annual profit are going to be 500000 $ 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 325500000 $. It is estimated that variable costs of production will amount to 21% of the cash cost of production, and annual depreciation costs are estimated to be 12% of the fixed and variable production. If the annual profit are going to be 500000 $ million, determine the quality percent return on the entire cost and the minimum payout period.

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

A new factory would require a fixed and variable production costs of
325500000 $. It is estimated that variable costs of production will
amount to 21% of the cash cost of production, and annual depreciation
costs are estimated to be 12% of the fixed and variable production. If
the annual profit are going to be 500000 $ million, determine the
quality percent return on the entire cost and the minimum payout
period.

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