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A fixed capital investment of ₱5,000,000 is required for a proposed manufacturing plant and an estimated working capital of ₱1,000,000. Annual depreciation is estimated to be 11% of the fixed capital investment. Annual revenue is ₱2346,000.
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- A fixed capital investment of ₱10,000,000 is required for a proposed manufacturing plant and an estimated working capital of ₱2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment and the payout period if the annual profit is ₱2,500,000. Ans: 12.50%, 4.8 yearsA proposed processing plant requires a fixed-capital investment of PhP8,832,292 and a working capital of PhP1,771,426. Annual depreciation is 7% of the fixed-capital investment. If the annual profit is PhP2,167,034, determine the payback period.6. A machine shop will require a fixed capital investment of ₱12,000,000andan estimated working capital of ₱2,250,000. Upon evaluation, the annual depreciation is estimated to be 9% of the fixed capital investment. If annual profit is ₱3,000,000, what is the rate of return on the total investment? Solve and show the solution.
- A proposed processing plant requires a fixed-capital investment of Php 9,008,632 and a working capital of Php 1,750,966. Annual depreciation is 6% of the fixed-capital investment. If the annual profit is Php 2,019,826, determine the payback period.A water pipeline system is installed in an industrial site that requires ₱12,500,000 initial investment. The pipeline network is expected to require a major upkeep that costs ₱606,000 every 3 years and pipe replacements at an estimated cost of ₱1,000,000 every 17 years. What is the capitalized cost of the pipeline project if prevailing annual interest is 9%?A project capitalized for ₱47,000 invested in depreciable assets will earn a uniform, annual income of ₱24523 in 10 years. The cost for operation and maintenance total ₱7,000 a year, and annual taxes and insurance will cost 3% of the investment. The company expects its capital to earn 10% before income taxes.What is the rate of return of the project?
- A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000. Annual depreciationn is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment and the payout period if the annual profit is P2,500,000.Ans. 12.50%, 4.8 yearsFor a proposed manufacturing plant, a fixed capital investment of P11,000,000 is required together with an estimated working capital of P2,500,000. Annual depreciation is estimated to be 10% of the fixed capital investment and annual profit is estimated to be P4,000,000. Based only on these given information, a. using the ROR method, what is the net annual profit of the project (in Php)? b. what is the rate of return of the proposed project (in 9%)? c. using the payback period method, what is the net annual cash flow of the project (in Php)? d. what is the payback period of this project (in years)?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 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 P3.5MA project is estimated to cost P110,000, last 8 years and have a P15,000 salvagevalue. The annual gross income is expected to average P24,000 and annualexpenses, excluding depreciation, will total P6,000. If capital is earning 10% beforeincome taxes, determine if this is a desirable investment using Payback Period in years:An Engineering Company is considering investing in a project. The estimated investment cost for this project amounts to Php 3,950,000. The projected maintenance costs and savings amount to Php 235,000 per year and Php 1,400,000 per year, respectively. The resale value of the project after the project's 10-year life is Php 2,350,000. What is the present worth of the project? Is it a sound investment opportunity?