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Assuming sales in the second to last year of the horizon period are $500,000 and a weighted average cost of capital (WACC) of 10%, use

Assuming sales in the second to last year of the horizon period are $500,000 and a weighted average cost of capital (WACC) of 10%, use the information provided below to compute the terminal value of the residual operating income (ROPI) at the end of the horizon period.

Last year in horizon period Terminal period

Sales growth 3.0% 2.0%

Net operating profit margin (NOPM) 6.0% 5.0%

Net operating asset turnover (NOAT) 4.0 ?

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