What is the unlevered after-tax incremental cash flow for year 30?

Question

Quizplus · Accepted Answer

Based on the given information, the unlevered after-tax incremental cash flow for year 30 can be calculated as follows:

EBIT = $41,000,000 × (1 – 0.35) = $26,650,000
Depreciation = $9,500,000
EBITDA = $26,650,000 + $9,500,000 = $36,150,000
Taxes = $6,200,000
NOPAT = $36,150,000 – $6,200,000 = $29,950,000
Unlevered after-tax incremental cash flow (UATCF) = $29,950,000 – $17,617,700 = $12,332,300

Therefore, the best choice is C.

What Is the Unlevered After-Tax Incremental Cash Flow for Year