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Civil Engineering · Q137

Engineering Economics

Engineering and GATE · Civil Engineering · question 137

Q137

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.

A.
28.33 %
B.
29.17 %
Answer
C.
30.12 %
D.
30.78 %

Answer: Option B

Solution

Answer: Option B
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