A fixed capital investment of ₱11,000,000 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. Annual revenue is ₱2641,000. Determine the rate of return of the proposed manufacturing plant.
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A fixed capital investment of ₱11,000,000 is required for a proposed manufacturing plant and an estimated
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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.What is the rate of return of the proposed manufacturing plant?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 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 project capitalized for ₱25,000 invested in depreciable assets will earn a uniform, annual income of ₱29647 in 10 years. The cost for operation and maintenance total ₱5,000 a year, and annual taxes and insurance will cost 5% of the investment. The company expects its capital to earn 14% before income taxes.Using the Annual Worth method, what is the total annual cost of the project?A 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.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.
- For 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 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 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 years
- Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. The annual operating cost will be Php 100,000 at the end of every year for the first four years and Php 160,000 thereafter. In addition there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i= 15%.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.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.