An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance expenses P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given investments.
An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance expenses P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given investments.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual
depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance
expenses = P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given
investments.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4811ca48-3353-43f2-8d73-93f2140a6978%2Ffe64c585-223b-48b3-8a11-82319581eeb3%2F1xy506_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual
depreciation =P 800,000, operational expenses annually P 400,000, annual taxes and insurance
expenses = P 175,000, miscellaneous expenses = P 42,000. Find the rate of return of the given
investments.
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