Question
A proposed production facility requires a fixed capital investment of P10,000,000 and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10%
A proposed production facility requires a fixed capital investment of P10,000,000 and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment.
If the annual profit is P2,500,000, determine the rate of return on the total investment.
If the annual profit is P2,500,000, determine the pay period
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To determine the rate of return on the total investment we need to calculate the net profit and divi...
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Management and Cost Accounting
Authors: Colin Drury
10th edition
1473748873, 9781473748910 , 1473748917, 978-1473748873
