Lahore traffic police collected Rs. 44,00,000/- in terms of fines for traffic violations in 2018. The maintenance and operating cost of e-challan system was Rs. 16,00,000 + 1977./-. The net profit has been split equally between the company providing e-challan system and excise department. Calculate the rate of return over a 5-year period for the company that paid for installation, operation and maintenance of the e-challan system, if its initial cost was Rs. 8,00,000/- and the profit for each of the 3 years is the same as it was in 2018?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Lahore traffic police collected Rs. 44,00,000/- in terms of fines for traffic violations in 2018. The maintenance and operating cost of e-challan system was Rs. 16,00,000 + 1977./-. The net profit has been split equally between the company providing e-challan system and excise department. Calculate the rate of return over a 5-year period for the company that paid for installation, operation and maintenance of the e-challan system, if its initial cost was Rs. 8,00,000/- and the profit for each of the 3 years is the same as it was in 2018?

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