This is the first time I’ve seen this and I guess it makes sense. To arrive at Fixed Capital investment (FCInv) the problem took ‘long term assets, net’ from 2009 and and subtracted them from the 2010 figure. Finally, they added the 2010 depreciation.

The corresponding CFA material (vol3 pp268-271 and vol4 pp280-283) do not cover this adjustment. Would anyone have some pointers here. I have no idea how many of these FCFF calculations I’ve gone over, however, I’m fairly certain this is the first one that adds depreciation.

Thanks