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Suppose XYZ Inc has $1 billion in sales and its Net Operating Capital is $500 million. Its current Operating Profitability (OP=NOPAT/Sales) is 10% and Capital

Suppose XYZ Inc has $1 billion  in sales and its Net Operating Capital is $500 million. Its current Operating Profitability (OP=NOPAT/Sales) is 10% and Capital Ratio is 0.5. Company's cost of capital is 15%. If XYZ is expected to grow its revenues at a 10% rate in the next 5 years. After five years XYZ's growth rate drops to 3% and  continues at that rate perpetually. 


 What is company's ROIC in year 1.

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