2562Civil EngineeringMedium
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?
A28.33 %
B30.12 %
C29.17 %
D30.78 %
Correct answer
C. 29.17 %
Explanation
The correct answer is 29.17 %.