Chemical Engineering - Chemical Engineering Plant Economics - Discussion
Discussion Forum : Chemical Engineering Plant Economics - Section 1 (Q.No. 7)
7.
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
Discussion:
12 comments Page 1 of 2.
Riya said:
5 years ago
The correct answer should be A.
return on investment = (Annual profit/ total investment) * 100.
= (1.5 lakh/ 10 lakh) * 100.
= 15%.
ROI does not depend on the time value of money.
return on investment = (Annual profit/ total investment) * 100.
= (1.5 lakh/ 10 lakh) * 100.
= 15%.
ROI does not depend on the time value of money.
(2)
Akshay Kore said:
4 years ago
The correct answer is 15% that is option A.
Simple ROR = (Annual profit/ total investment) * 100.
= (1.5 lakh/ 10 lakh) * 100.
= 15%.
Simple ROR = (Annual profit/ total investment) * 100.
= (1.5 lakh/ 10 lakh) * 100.
= 15%.
(1)
Digby said:
1 decade ago
Can someone explain the math here please? If annual return is 1.5,
10 x 1.5 = 15 after 10 years.
So return on investment of 10 is 150%, no?
10 x 1.5 = 15 after 10 years.
So return on investment of 10 is 150%, no?
Rutu Patel said:
1 decade ago
Rate of return = (profit/investment)*100%.
And for per year divide answer with no.of years.
So for here,
150000 * 100 / 1000000 = 15%.
Rate of return per year = 15/10(year) = 1.5%.
Isn't it?
And for per year divide answer with no.of years.
So for here,
150000 * 100 / 1000000 = 15%.
Rate of return per year = 15/10(year) = 1.5%.
Isn't it?
Nishant said:
9 years ago
Total profit = 10 * 1.5L = 15L.
investment = 10L,
ROI = (15/10) * 100 = 150%,
ROI per year = 150/10 = 15%,
So, answer either be 15 or 150.
investment = 10L,
ROI = (15/10) * 100 = 150%,
ROI per year = 150/10 = 15%,
So, answer either be 15 or 150.
Rupin said:
8 years ago
Its,
(Annual profit * 100)/(project life * total capital investment).
(Annual profit * 100)/(project life * total capital investment).
Mohit said:
7 years ago
Right answer is 15%.
Shiv said:
6 years ago
Total profit is = 1.5 * 10= 15 lacks.
Total investment is 1o lacks, so
Simple rate of return on investement = 15*100/10= 150%.
Rate of return means how many per cent of your total investment you are obtaining as a profit.
Total investment is 1o lacks, so
Simple rate of return on investement = 15*100/10= 150%.
Rate of return means how many per cent of your total investment you are obtaining as a profit.
Akshay said:
5 years ago
The Right answer will be option A, right?
HIMANSHU said:
4 years ago
Right answer is 15% because,
Percentage rate of return(rb) = yearly profit(p)/Total intial investment * 100,
Then,
1.5/10*100=1.5%.
Percentage rate of return(rb) = yearly profit(p)/Total intial investment * 100,
Then,
1.5/10*100=1.5%.
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