Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Question
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Chapter 13, Problem 1P
To determine

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

Expert Solution & Answer
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Explanation of Solution

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

NOPAT=[(1Tax rate)×(ReceiptsExpensesDepreciation)]=[(10.25)×(8,000,000$4,000,000$2,000,000)]=$1,500,000

The net operating income after taxes (NOPAT) is $1,500,000.

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