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. 30.78 %
• C. 29.17 %
• D. 30.12 %

Answer: (C)