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.

Engineering Economics
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.

29.17 %

30.12 %

30.78 %

28.33 %

29.17 %

30.12 %

30.78 %

28.33 %

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Engineering Economics
Which is true about corporation?

It is worse type of business organization.

The stock holders of the corporation are only liable to the extent of their investments.

Its life is dependent on the lives of the incorporators.

The minimum number of incorporators to start a corporation is three.

It is worse type of business organization.

The stock holders of the corporation are only liable to the extent of their investments.

Its life is dependent on the lives of the incorporators.

The minimum number of incorporators to start a corporation is three.

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Engineering Economics
One banker’s year is equivalent to ______ days.

300

365

360

366

300

365

360

366

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Engineering Economics
What is another term for “current assets”?

Fixed assets

Ccash

Liquid assets

Non-liquid assets

Fixed assets

Ccash

Liquid assets

Non-liquid assets

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Engineering Economics
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Joint bond

Security bond

Mortgage bond

Collateral trust bond

Joint bond

Security bond

Mortgage bond

Collateral trust bond

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Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,270.34

P 3,280.34

P 3,260.34

P 3,250.34

P 3,270.34

P 3,280.34

P 3,260.34

P 3,250.34

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Engineering Economics

Engineering Economics Which is true about corporation?

Engineering Economics One banker’s year is equivalent to ______ days.

Engineering Economics What is another term for “current assets”?

Engineering Economics A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Engineering Economics A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

Engineering Economics
Which is true about corporation?

Engineering Economics
One banker’s year is equivalent to ______ days.

Engineering Economics
What is another term for “current assets”?

Engineering Economics
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?