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You are given the following information. 0 1 2 3 4 5 Revenue 100 120 144 173 207 249 EBIT(1-t) 60 72 86 104 124
You are given the following information.
0 | 1 | 2 | 3 | 4 | 5 | |
Revenue | 100 | 120 | 144 | 173 | 207 | 249 |
EBIT(1-t) | 60 | 72 | 86 | 104 | 124 | 149 |
The sales-to-capital ratio is 2. Compute the reinvestment. What is the cumulative reinvestment $ in years 1-5?
1) 44.5
2) 298
3) 74.5
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