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A fixed capital investment of P10, 000, 000 is required for a proposed manufacturing plant and an estimated working capital of P2, 000, 000. Annual

A fixed capital investment of P10, 000, 000 is required for a proposed manufacturing plant and an estimated working capital of P2, 000, 000. Annual depreciation is estimated to be 10% of the fixed capital investment. a. Determine the rate of return on the total investment. b. Payout period if the annual profit is P2, 500, 000.

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