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A proposed manufacturing plant will require a fixed capital investment of P8,000,000 and an estimated working capital of P1,500,000 Annual depreciation is estimated to be 8% of fixed capital investment If the annual profit is P2,000,000, determine the rate of return on the total investment and minimum payout period

  • Rate of Return (ROR)=2095%>8%
  • Rate of Return (ROR)=2115%>8%
  • Rate of Return (ROR)=2085%>8%
  • Rate of Return (ROR)=2105%>8% Correct
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