1. A P15M worth of fixed capital investment is required for a proposed powerplant, and an estimated P2.75M working capital. Annual depreciation is estimated to be 12% of the fixed capital investment.Determine the rate of return on the total investment and the payback period if the annual profit is P3.5M

Given, Fixed Capital Investment = $15,000, 000 Working Capital = P 2,750,000 Annual Depreciation…

Answered: M worth of fixed capital investment is…

M worth of fixed capital investment is required for a proposed powerplant, and an estimated P2.75M working capital. Annual depreciation is estimated to be 12%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. A P15M worth of fixed capital investment is required for a proposed powerplant, and an estimated P2.75M working capital. Annual depreciation is estimated to be 12% of the fixed capital investment.
Determine the rate of return on the total investment and the payback period if the annual profit is P3.5M

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