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Adding the non-cash adjustments to EBIAT results in FCFs.
Free Cash Flow Valuation Year 1 Year 2 Year 3 EBIT 16,667 26,667 36,667 Less: Tax on EBIT 5,500 8,800 12,100 EBIAT 11,167 17,867 24,567 Non-Cash Adjustments (b) 43,333 43,333 43,333 Free Cash Flows 54,500 61,200 67,900 Capitalization: Total Enterprise Value (d) 136,996 102,932 58,214 Debt 100,000 50,000 20,000 WACC Calculations: Debt Percent 73.
This is your EBIAT number, which gives you an operating cash flow of $12.