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Quantify the Effects of Managerial Actions on ROPI and Components Rincon Farms Inc. reports the following financial data just prior to its fiscal year ended
Quantify the Effects of Managerial Actions on ROPI and Components Rincon Farms Inc. reports the following financial data just prior to its fiscal year ended December 31, 2019 (\$ millions). a. Compute ROPI for FY2019 and FY2020. Net operating assets (NOA) at the beginning of 2019 were $1,350. Rnund anewere tn nne Nerimal place, if applicable. 1. Reduce inventory by 10% which reduces accounts payable by 5%. 2. Decrease property, plant and equipment (PPE) by 20% with no consequent impact on NOPAT. 3. Engage in a sale leaseback of a major building. The company will sell 50% of its PPE at book value and increase rental costs by $30 after tax, per year. 4. Increase debt $300, which increases interest expense by $15. Round answers to one decimal place, if applicable
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