Calculating incremental unlevered net income

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1. In the case study, when calculating incremental unlevered net income, should we include all the expenses mentioned in the case? If not, what expenses should we exclude and why?

2. Is there a big jump of unlevered net income from Year 5 to Year 6? Why? What is the net effect of depreciation on the FCF in Year 5? Is it zero?

Reference no: EM133254294

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