EP Enterprises has the following income statement. How much…

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?   Sales $1,800.00 Costs 1,400.00 Depreciation      250.00 EBIT $   150.00 Interest expense        70.00 EBT $     80.00 Taxes (40%)        32.00 Net income $     48.00    

A firm with a 10 percent cost of capital is evaluating two p…

A firm with a 10 percent cost of capital is evaluating two projects for this year’s capital budget.  The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$13,000 $6,900 $5,600 $6,000 Project Y: -$14,000 $5,500 $6,000 $6,600 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?