Problem Statement: Engineering Economics
Rate of Return Problem SolvingA feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.
A. 38.33%
B. 29.17%
C. 30.12%
D. 30.78%
Problem Answer:
The rate of return on the total investment if the annual profit is P3,500,000 is equal to 29.17%.
View Solution:
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