Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? Sales $1,800.00 Costs 1,400.00 Depreciation
1. EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?
| Sales | $1,800.00 |
| Costs | 1,400.00 |
| Depreciation | 250.00 |
| EBIT | $ 150.00 |
| Interest expense | 70.00 |
| EBT | $ 80.00 |
| Taxes (30%) | 24.00 |
| Net income | $ 56.00 |
| a. | $85.50 | |
| b. | $120.00 | |
| c. | $90.00 | |
| d. | $105.00 | |
| e. | $97.50 |
2. Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
| r: | 12.00% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | $1,200 | $400 | $425 | $450 | $475 |
| a. | $62.88 | |
| b. | $50.93 | |
| c. | $90.02 | |
| d. | $11.31 | |
| e. | $118.12 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started