Which of the following produces an incorrect observation?

A) The tax shield for NOPAT calculations is subtracted from the total tax expense to determine the tax on operating results.

B) The tax shield for NOPAT calculations is based on non-operating items from the income statement.

C) The operating tax is subtracted from operating income to determine NOPAT.

D) All of the answers are correct.

E) A higher NOPAT, will typically result in a higher the return on invested capital.