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Discussion :: Engineering Economics

  1. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

    2. A.

     28.33 %
    B.

     29.17 %
    C.

     30.12 %
    D.

     30.78 %

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    Workspace

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    Answer : Option B

    Explanation :

    Explanation Not Provided

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