Exercise 12-8 Calculating ROI - SEE TEXTBOOK PAGE 12-29
For fiscal year 2020, LaundryMate Products had income as follows:
	Sales					$ 55,000,000
	Less:
	Cost of goods sold			$ 38,400,000
	Selling and administrative expense		5,700,000
	Interest expense			1,000,000		45,100,000
	Income before taxes					9,900,000
	Less income taxes					1,980,000
	Net income					$ 7,920,000
Other pertinent information for 2020 follows:
	Total assets					$ 97,000,000
	Noninterest-bearing current liabilities		3,200,000
	Required rate of return on invested capital		10%
Required
Calculate NOPAT, invested capital, and ROI for LaundryMate Products.
	Income tax rate =					=
	NOPAT =		+ [		(		)] =
						This cell (G23) can be formatted as 1 - income tax rate
	Invested capital =					=
	ROI =		=
Comment on the company's profitability.
What-if?
Consider the following after you have completed the requirements of E12-8 above.
Suppose LaundryMate Products had fully depreciated equipment of which it decided to dispose. Calculate ROI after the disposal of the equipment. The amount of fully depreciated equipment is:
$11,000,000
	NOPAT =		+ [		(		)] =
	Adjusted invested capital =					=
	New ROI =		=
What incentives might a manager have to dispose of assets?