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Recalculate the forecasts in Table 8-4 (attached) assuming that the NOPAT profit margin is held steady for the first five years of the forecast and then declines by 0.1 percentage points per year thereafter (keeping all the other assumptions unchanged). Show all calculations.

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  • Table+8-4.xls Download Attachment

    2006
    10.0%
    3.9%
    -0.8%
    25.8%
    37.9%
    3.3%

    2007
    10.0%
    3.8%
    0.0%
    25.2%
    37.9%
    3.3%

    2008
    10.0%
    3.8%
    0.0%
    25.4%
    37.9%
    3.3%

    2009
    10.0%
    3.7%
    0.0%
    25.6%
    37.9%
    3.3%

    2010
    10.0%
    3.7%
    0.0%
    25.9%
    37.9%
    3.3%...
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