ResearchCo is a medical devices company, producing equipment for diagnosing and treating heart disease. The company currently generates
$100 million in revenues and is expected to grow 10 percent per year. ResearchCo maintains cost of sales at 50 percent of revenue, maintains research and development (R&D) at 15 percent of revenue, and pays an operating tax rate of 30 percent. To generate 10 percent growth, ResearchCo will reinvest 20 percent of NOPLAT each year. Last year's invested capital equaled $75 million. Using the preceding data, forecast five years of NOPLAT and five years of invested capital. What is the ROIC on year-end capital by year? Do not capitalize R&D.