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Solve the following problems: A. If NOPAT is $5,000, r = 15%, and BVt1 is $50,000, what is AE? B. If NOPAT is $25,000, r

Solve the following problems:

A. If NOPAT is $5,000, r = 15%, and BVt1 is $50,000, what is AE?

B. If NOPAT is $25,000, r = 18%, and BVt1 is $125,000, what is AE?

C. Assume that the firm in (B) can increase NOPAT to $30,000 by introducing some cost cutting measures. What is the new AE?.

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