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5 Cards in this Set
- Front
- Back
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NOPAT, what is this?
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Net Operating Profit After Tax
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How to calculate NOPAT?
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NOPAT =
EBITDA - Depreciation/Amortization - Taxes |
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FCF
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FCF=
NOPAT + Depreciation/Amortization - Capital Expenditures - changes in Working Capital Requirement (WCR) |
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What influences the present value of an investment?
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1) Magnitude of the cash flows
2) Timing (the earlier, the better) 3) Degree of uncertainty (the less risky, the better) |
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DCF - what is "n"
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n = economic life of the investment
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