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Firms A, B, and C record the results that are presented in the following table. Calculate for each company the ROIC (%) and FCF =

Firms A, B, and C record the results that are presented in the following table. Calculate for each company the ROIC (%) and FCF = NOPAT - i. Assume that the WACC is 12.5% and that the amount of capital invested in each company is $ 1,200 in Company A, $ 900 in Company B, and $ 700 in Company C.


A

B

C

NOPAT ($)

200

200

200

Growth rate

(g)

8%

12%

18%

Net investment /NOPAT

90%

80%

25%

Net investment ($)

$180

$160

$50

Increase in

NOPAT ($)

$16

$24

$36


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