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Last year Cole Furnaces had $5 million in operating income (EBIT). The company had a net...

Last year Cole Furnaces had $5 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1 million; its corporate tax rate was 40%. The company has $14 million in operating current assets and $4 million in operating current liabilities; it has $15 million in net plant and equipment.. Assume that Cole’s only noncash item was depreciation.

a. What was the company’s net income for the year?

b. What was the company’s net cash flow?

c. What was the company’s net operating profit after taxes (NOPAT)?

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