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The question from the image asks:

**As Calvin Apparels Limited's chief accountant, you need to establish the company's net operating profit after taxes (NOPAT) for year-on-year growth. If Calvin Apparels has an operating profit of $500,000, interest expenses of $100,000, and taxes of $75,000, what is the net operating profit after taxes (NOPAT)?**

To calculate **NOPAT**, we need the following formula:
\[
\text{NOPAT} = \text{Operating Profit} - \text{Taxes}
\]
Where:
- Operating Profit = $500,000
- Taxes = $75,000

We will disregard interest expenses because **NOPAT** focuses on operating profit excluding interest expenses.

Now, let's compute the NOPAT:

\[
\text{NOPAT} = 500,000 - 75,000 = 425,000
\]

Thus, the **net operating profit after taxes (NOPAT)** is **$425,000**.

Would you like further clarification or details? Here are 5 related questions:

1. What is the importance of NOPAT in financial analysis?
2. How does NOPAT differ from net income?
3. Why are interest expenses excluded from the NOPAT calculation?
4. What other financial ratios or metrics can be derived from NOPAT?
5. How does NOPAT impact a company’s valuation?

**Tip**: NOPAT is an important measure when analyzing a company's operational efficiency since it excludes the effect of financing and focuses on core operations.

As Calvin Apparels Limited's chief accountant, you need to establish the company's net operating profit after taxes (NOPAT) for year-on-year growth. If Calvin Apparels has an operating profit of $500,000, interest expenses of $100,000, and taxes of $75,000, what is the net operating profit after taxes (NOPAT)?

Learn how to calculate the net operating profit after taxes (NOPAT) for Calvin Apparels with an operating profit of $500,000 and taxes of $75,000. This solution provides a step-by-step approach to calculating NOPAT, excluding interest expenses, ideal for accounting and business studies.

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