Question: The following information is reported for the current year for North Atlantic Division of XT Enterprises: Sales $3,800,000 Interest expense $250,000 Net income $500,000 Total

The following information is reported for the current year for North Atlantic Division of XT Enterprises:

Sales $3,800,000

Interest expense $250,000

Net income $500,000

Total assets $5,000,000

Noninterest-bearing current liabilities $400,000

Cost of capital 8%

Required rate of return 14%

Tax rate 30%

How much is the divisions NOPAT?

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