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Cobalt Industries had sales of 100,000 units at a price of $10 per unit. It faced fixed operating costs of $250,000 and variable operating costs
Cobalt Industries had sales of 100,000 units at a price of $10 per unit. It faced fixed operating costs of $250,000 and variable operating costs of $5 per unit. The company is subject to a tax rate of 38% and has a weighted average cost of capital of 8%. Calculate Cobalt's net operating profits after taxes (NOPAT), and use it to estimate the value of the firm. Note: Enter a pure number as an integer. Do not include any units or dollar signs. If your answer is $2,345.67, please enter 2,345.
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