Nopat me interest ke taxation ka effect kyuu nhi consider karte???… Real tax pay to ham interest less karne ke baad karenge na… To NOPAT calculate karte time ebit pe tax kyuu calculate karte h… Why not on (EBIT-I). Interest ki saving ka effect to Diya hi ni
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NOPAR refers to Net – operating profits. That means we do not have to consider any finance cost, such as interest. Since, tax shiled on interest is considered while deriving the ultimate finance cost (interest rate), while calculating NOPAT, we do not do so.
Hope you got it.