Engineering Economy (16th Edition) - Standalone book
Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Question
Book Icon
Chapter 13, Problem 1P
To determine

The company’s net operating income after taxes (NOPAT).

Expert Solution & Answer
Check Mark

Explanation of Solution

The net operating income after taxes (NOPAT) is calculated as follows.

NOPAT=[(1Tax rate)×(ReceiptsExpensesDepreciation)]=[(10.4)×(8,000,000$4,000,000$2,000,000)]=$1,200,000

The net operating income after taxes (NOPAT) is $1,200,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
In 2015, a firm has receipts of $8 million and expenses (excluding depreciation) of $4 million. Its depreciation for 2015 amounts to $2 million. If the effective income tax rate is 40%, what is this firm’s net operating income after taxes (NOPAT)?
Concepcion Industries paid $308,000 in federal taxes last year. If business expenses and depreciation charges were $345,000, what were their gross sales for the year?
what will be the value of the net domestic product at the factor cost if the gross domestic product at the factor cost is $ 7766 and the depreciation is $ 1101
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning