An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance expenses P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given investments.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 6E
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An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual
depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance
expenses = P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given
investments.
Transcribed Image Text:An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance expenses = P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given investments.
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