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Hi there sir hope you are doing well
Im curious about the calcuation of NOPAT figure given in the mark scheme
As you didnt deduct any accounting or economic depreciation in calculating NOPAT figure in the lectures im confused as to why the examiner has
ThankyouNo sure what you mean. In the examiner’s answer to calculate NOPAT, accounting depreciation was added back ($6m) and economic depreciation was deducted ($14m).
The capital employed was also adjusted for the historic effects of the different types of depreciation.
We at OpenTuition have not produced and answer for this question, so I don’t know what you mean by “As you didn’t deduct any accounting or economic depreciation…”
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