What rate of return must the firm earn

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Reference no: EM132007183

Suppose a firm like the one in Question takes a different approach. It ends 2016 with invested capital of $400,000. Then it announces that it will invest half of next year's NOPAT (in 2017) to grow its invested capital by 6%.

What rate of return (ROIC) must the firm earn on its capital in order to achieve that growth rate from that level of investment?

Reference no: EM132007183

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