Economic Profit -- Corporate

Granite example — Table 32 - Page 63 – Economic Profit


In table 32 for NOPAT they add back in the after tax gain from salvage in the FINAL 5th year. This question has no NWC from t=0.

With NWC for the Terminal year after tax non operating CF we have = Salo + NWC - T(SALo - BV). With the question above in table 32 they added back — SALo - T(SALo - BV). If there was NWC would we add SALo + NWC - T(SALo - BV) to NOPAT?

Or do we just add after tax salvage values?