Question
Question 2 XYZ reported the following: An EBIT of $10 million An R&D expenses of $30 million Invested capital of $40 million R&D in this
Question 2
XYZ reported the following:
An EBIT of $10 million
An R&D expenses of $30 million
Invested capital of $40 million
R&D in this line of business takes around 3 years to pay off
Previous R&D expenses for years -1,-2, -3 , and -4 are $24 million, $18 million and $12 million , and 9 million respectively .
Marginal tax rate=30%
Compute ROIC
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
