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Hi sir
Need your help in understanding why there were no adjustments for the lease amortization for NOPAT. Is it because the question mentioned it is not subjected to amortization thus should leave it as no adjustments required? ThanksThe lease is valued at 16 each year so that is added back to capital employed for both years. There is no depreciation charged so no adjustment is needed by adding back book depreciation for NOPAT. No economic depreciation needs to be taken off NOPAT because the lease is valued at 16 each year.
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