Fixed Capital Investment vs CFI
Question regarding the Fixed Captial Investment (FC Inv) used to calculate free cash flow to equity.
So if Fixed Capital Investment = cash spent on fixed assets - cash received from sale of fixed assets, isn’t this pretty much identical to Cash Flow from Investing (except the sign will be negative since CFI = cash from sale from fixed assets - cash used in purchase of fixed assets)
So does Fixed capital investment = - CFI? Is this always the case or am I missing something (do they always equal)? Gains/losses on sales shouldn’t matter either right because both CFI and FCinv take into consideration these adjustments?
And since FCFE = CFO + Net Borrowing - FCinv,
does this mean FCFE = CFO + CFI + Net Borrowing?
long winded question but to summarize, does CFI always equal (-FC inv)?