Exercise 12-8Calculating ROI - SEE TEXTBOOK PAGE 12-29 For fiscal year 2020, LaundryMate Products had income as follows: Sales $ 55,000,000 Less: Cost of goods sold $38,400,000 Selling and administrative expense 5,700,000 Interest expense 1,000,000 45,100,000 Income before taxes 9,900,000 Less income taxes 1,980,000 Net income $7,920,000 Other pertinent information for 2020 follows: Total assets $97,000,000 Noninterest-bearing current liabilities 3,200,000 Required rate of return on invested capital 10% Required Calculate NOPAT, invested capital, and ROI for LaundryMate Products. Income tax rate = = NOPAT = + [ ( )] = Invested capital = = ROI = = Comment on the company's profitability. What-if? Consider the following after you have completed the requirements of E12-8 above. Suppose LaundryMate Products had $11,000,000 of fully depreciated equipment of which it decided to dispose. Calculate ROI after the disposal of the equipment. NOPAT = + [ ( )] = Adjusted invested capital = = New ROI = = What incentives might a manager have to dispose of assets?