The total investment in a project is Rs. 10 lakhs and the... — Answer & Explanation | PrepBeePakistan

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HomeMCQsChemical Engineering

MEDIUMENGLISHChemical Engineering

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__________________?

Correct answer: A

Explanation

Simple Rate of Return = (Annual Profit / Total Investment) * 100. So, (1.5 lakhs / 10 lakhs) * 100 = 15%.

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