What Is the Expected Net Operating Profit After Tax (NOPAT)

question 103

Multiple Choice

What is the expected net operating profit after tax (NOPAT) if the most likely estimates are used?

• A) $493,500
• B) $330,000
• C) $300,000
• D) $124,500

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Definitions:

Cash Break-even

The point at which a business's cash expenses equal its cash revenues, resulting in no net cash flow.

Accounting Break-even

The point at which total revenues equal total expenses, indicating no profit or loss from operations.

Financial Break-even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss from a financial perspective.

IRR

Internal Rate of Return; a financial metric used in capital budgeting to estimate the profitability of potential investments.