There is this one thing that’s been bugging me for a while. FCinv = CAPEX - (proceeds from net sales)(1-T).
CAPEX = Ending net PP&E - Beginning Net PP&E + Depreciation = Ending gross PP&E - Beginning gross PP&E. Is this right?
Therefore in the following FCFE formula:
FCFE = NI - (1 - DR)(CAPEX - Depreciation) - (1-DR)(WCInv) = NI - (1-DR)(Ending net PP&E - Beginning net PP&E) - (1-DR)(WCInv).
Would this be correct?