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

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 28P

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