EP Enterprises has the following income statement.How much net operating profit after taxes (NOPAT) does the firm have? $\begin{array}{lr}
\text { Sales } & \$ 1,800.00 \
\text { Costs } & 1,400.00 \
\text { Depreciation } & 250.00 \
\text { EBIT } & \$ 150.00 \
\text { Interest expense } & 70.00 \
\text { EBT } & \$ 80.00 \
\text { Taxes (25\%) } & 20.00 \
\text { Net income } & \$ 60.00
\end{array}$

Question

Quizplus · Accepted Answer

NOPAT is calculated as EBIT * (1 - Tax Rate). Here, EBIT is $150 and the tax rate is 25%, so NOPAT = $150 * (1 - 0.25) = $150 * 0.75 = $112.50.

EP Enterprises Has the Following Income Statement A) $10153 B) $106

EP Enterprises Has the Following Income Statement A) $10153
B) $106