DUMB Question - CFAi Mock PM - Question 14

CFA Level II
#1

I am so completely discouraged after having been killed by the CFA mock…anyway…

Question 14 in the CFAi Mock - PM Session asks to calculate the Free Cash Flow. I’m confused by their calculation of CapEx. Why do they add depreciation of 1,282.9 back to [2014 Net Fixed Assets] - [2013 Net Fixed Assets], when we have already added depreciation back to Net Noncash Charges? It just seems like double counting to me…

#2

Its for FCInv

FCInv = Ending Net PPE - Beg net PPE + Dep

or Ending Gross PPE - Beg Gross PPE (if there’s no asset sale)

#3

i got this wrong too. I just plugged & chugged the fcff formula and got -904.02.

of course if you look at the exhibit, there was no FCinv, it’s just the depn offset. Another reason to look at all the answers and think it through a little.