Answer:
Option (d) is correct.
Explanation:
Given that,
Sales = $ 3,900.00
Costs = 1,400.00
Depreciation = 250.00
EBIT = $ 2,250.00
Interest expense = 70.00
EBT = $ 2,180.00
Taxes (25%) = 872.00
Net income = $ 1,308.00
Hence,
Net operating profit after taxes:
= EBIT × (1 - tax rate)
= $2,250.00 × (1 - 25%)
= $2,250.00 × 0.75
= $1,687.5
Therefore, the net operating profit after taxes (NOPAT) is $1,687.5.
