t is required to have a fixed investment of Php 10,000,000.00 to a proposed Ice plant, and an estimated working capital of Php 2,000,000.00. The annual depreciation is estimated to be 10% of fixed investment. Determine the rate of return on the total investment and the payout period if the annual profit is Php 2,500,000.00 [ pls include graph and diagram if necessary. Thank you. ]

t is required to have a fixed investment of Php 10,000,000.00 to a proposed Ice plant, and an estimated working capital of Php 2,000,000.00. The annual depreciation is estimated to be 10% of fixed investment. Determine the rate of return on the total investment and the payout period if the annual profit is Php 2,500,000.00 [ pls include graph and diagram if necessary. Thank you. ]

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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