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.

0.3012
0.3078
0.2833
0.2917

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Engineering Economics
Liquidity ratios are used:

To measure a firm’s ability to meet short-cut obligations
All of these
To compare short term obligations to short-term resources available to meet these obligations
To obtain much insight into the present cash solvency of the firm and the firm

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