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Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Cisco Systems' sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its year ended July 31, 2016 ($ millions). Sales $49,247 Net operating profit after tax (NOPAT) 10,575 Net operating assets (NOA) 26,472 Use the parsimonious method to forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 using the following assumptions. Sales growth per year 1.0% for 2017 and 2.0% thereafter Net 21.5% operating profit margin (NOPM) Net operating asset turnover (NOAT). based on NOA at July 31, 2016 1.86 Rounding instructions: Round total revenue "unrounded" to two decimal places. Round total revenue "rounded", NOPAT and NOA answers to the nearest whole number. For NOPAT and NOA computations, use total revenue "rounded". $ millions 2017 Est 2018 Est. 2019 Est. 2020 Est. Use the parsimonious method to forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 using the following assumptions. Sales growth per year 1.0% for 2017 and 2.0% thereafter Net operating profit margin (NOPM) Net operating asset 21.5% turnover (NOAT). based on NOA at July 31, 2016 1.86 Rounding instructions: Round total revenue "unrounded" to two decimal places. Round total revenue "rounded", NOPAT and NOA answers to the nearest whole number. For NOPAT and NOA computations, use total revenue "rounded". $ millions Total revenue (unrounded) $ Total revenue (rounded) NOPAT NOA 2017 Est 49,739.47 $ 49,739 10,694 26,741 2018 Est. 2019 Est. 2020 Est. 50,734.26 $ 51,748.95 $ 52,783.93 50,734 51,749 52,784 10,908 11,126 11,349 27,276 27,822 28,378

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