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Unlevered net income (also known as Net Operating Profit After Tax, or NOPAT) is calculated as EBIT x (1-Tax Rate). Unlevered net income therefore depends

Unlevered net income (also known as Net Operating Profit After Tax, or NOPAT) is calculated as EBIT x (1-Tax Rate). Unlevered net income therefore depends on the size of firm's interest and hence its debt decisions.

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