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.

28.33 %
29.17 %
30.12 %
30.78 %

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Engineering Economics
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

0.1632
0.1647
0.1602
0.1628

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Engineering Economics
In case of bankruptcy of a partnership,

The partners nay sell stock to generate additional capital
The partners personal assets are attached to the debt of the partnership
The partners are not liable for the liabilities of the partnership
The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

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