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Marine Division of Sando Company Reported Net Operating Profit After

Question 84

Multiple Choice

Marine Division of Sando Company reported net operating profit after taxes of $27,000 in 2017.The cost of capital was 14 percent and the invested capital was $150,000.Current year R&D expense is $80,000.If R&D had been capitalized, amortization would have been $20,000 for 2017.The income tax rate is 30 percent.How much is adjusted NOPAT to be used in calculating EVA for 2017?


A) $45,000
B) $41,000
C) ($15,000)
D) $69,000

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