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 2 of 2.
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?
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?
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