Question

Following is information from Intel Corporation for 2016 ($ in millions). Total revenue $59,387 Projected revenue growth rate 5.0% Net operating profit margin (NOPM) 17.3% Net operating assets (NOA) $83,316 Net operating asset turnover (NOAT) 0.74 Projected net operating profit after tax (NOPAT) for 2017 is:

Answer 1

the Projected net operating profit after tax (NOPAT) is $10,788

Step-by-step explanation:

The computation of the Projected net operating profit after tax (NOPAT) is given below:

= Total revenue × (1 + growth rate) × net operating profit margin

= $59,387 × (1 + 0.05) × 17.3%

= $62,356.35 × 17.3%

= $10,788

Hence, the Projected net operating profit after tax (NOPAT) is $10,788