If your incremental cost of capital is 10 would you invest


Walmart has sales of $1 million, EBIT of $125K, Amortization of $15K and with a 40% tax rate after tax NOPAT of $84K. Invested capital is $1 million thus ROIC is a sub-par 8.4% yet RONA is about 16.8% how is this possible?

If your incremental cost of capital is 10% would you invest in growth? Why or why not?

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Financial Management: If your incremental cost of capital is 10 would you invest
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