Determine the standard percent return on total investment

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A proposed chemical plant will require a fixed-capital investment of $10 million. It is estimated that the working capital will amount to 25 percent of the total investment, and annual depreciation costs are estimated to be 10 percent of the fixed-capital investment. If the annual profit will be $3 million, determine the standard percent return on the total investment and the minimum payout period.

Reference no: EM131061506

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