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    Calculate net income, net cash flow, FCF and EVA

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    Last year, ABC had an EBIT of $5 million, depreciation of $1 million, interest of $1 million, and a tax of 40%. ABC has $14 million in non-interest-earning CA and $4 million in CL. It has $15 million in net P&E. the cost of capital is 10%. What is the net income? What is the net cash flow? What is the NOPAT? If the capital in the previous year was $24 million, what is the FCF this year? What is the EVA?

    Please answer using Excel.

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    Solution Summary

    The expert calculates the net income, net cash flow, FCF and EVA are examined.