A fixed capital investment of P12M is required for a production plant and an estimated working capital of P3M. Annual Depreciation is estimated to be 15% of the capital investment. Determine the rate of return on the total investment and the length of time to recover it if the annual profit is P2.8M.

A fixed capital investment of P12M is required for a production plant and an estimated working capital of P3M. Annual Depreciation is estimated to be 15% of the capital investment. Determine the rate of return on the total investment and the length of time to recover it if the annual profit is P2.8M.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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