WACC Method The after-tax Wacc will be less than the firm's opportunity cost of capital because of the tax advantages of debt financing Discount the unlevered cash flows(UCFs) at the after-tax Wacc to get the nPvWACC Method • The after-tax WACC will be less than the firm’s opportunity cost of capital because of the tax advantages of debt financing. • Discount the unlevered cash flows (UCFs) at the after-tax WACC to get the NPV