Mr Lee has a fixed capital investment of 20M for a proposed manufacturing estimated to be 10% of the fixed capital investment. Determine the approximate profit expected annually if the minimum pay-out period is 3 years. Mr Lee has a fixed capital investment of 20M for a proposed manufacturing estimated to be 10% of the fixed capitalinvestment. Determine the approximate profit expected annually if the minimum pay-out period is 3 years.ANSWER:_Million

We need to compute future value of the investment with rate of 10% for 3 years.

r Lee has a fixed capital investment of 20M for a proposed manufacturing estimated to be 10% of the fixed capital investment. Determine the approximate profit expected annually if the minimum pay-out period is 3 years.

r Lee has a fixed capital investment of 20M for a proposed manufacturing estimated to be 10% of the fixed capital investment. Determine the approximate profit expected annually if the minimum pay-out period is 3 years.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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