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problem: Laiho Industries reported the following information in its yearly report:

Net income = $7.0 million.

NOPAT = $60 million.

EBITDA = $120 million.

Net profit margin = 5.0 percent.

Laiho has a depreciation expense, but no amortization expense. Laiho has USD 300 million in operating capital, its after-tax cost of capital is ten percent, and the firm’s tax rate is 40 percent. Determine Laiho’s depreciation expense?

[A]       $53.0 million

[B]      $60.0 million

[C]      $77.1 million

[D]      $20.0 million

[E]      $30.0 million

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