Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and it has no amortization expense. The company is 100% equity financed. The company has a 40% tax rate, and its net investment in operating capital is $1,000,000.

What is BBC's net operating profit after taxes (NOPAT)?

Select one:

a. $1,000,000

b. $1,200,000

c. $1,250,000

d. $1,500,000

e. $1,550,000