mkytz15

hey, can someone explain how you arrived at 572,500 in the first place?
so you start off with EBITDA: (2,500,000 * 1.05) * 30% = 787,500.  then aren’t you supposed to take net of taxes, i.e. multiply by (1 - t)?  answer key jumps straight to adding back (Dep * t) = 78,750, then deducts FCInv (275,000) and WCInv (18,750) to arrive at 572,500, when it is supposed to be 336,250.
i can live with the calculation error, cuz that’s easy enough to figure out, but leaving out a KEY computational step?  did i get this right, or am i missing something?