a friend showed me this one and got me confused, to find FCFE…

Net PPE 2008 = 3794

Net PPE 2009 = 4150

CFO = 1042

CFI = -648

CFF = -334

Net Borrowing = 94

In the official answer it says that FCInv = CFI

Is this always the case?

What question is this from?

To calculate FCFE starting with CFO

FCFE = CFO + Net Borrowing - CAPEX

Obviously CAPEX is not Explicitely stated if we had Gross PPE or depreciation we could easily figure it out, although you’ve given us neither directly. If you assume that the ONLY thing that was invested in was fixed assets in the form of purchases, then you could get CAPEX from that, although the CFAI is unlikely to make you assume anything.

FCFE = 1042 + 94 - 648 = 487

Edit: Corrected the typo where I had used the wrong number.

Why are you using CFF and not subtracting Capex?

I am assuming this is a typo? elcoelhon : Have they provided a complete breakdown of CFI, or just a single-line-consolidated CFI?

It was definitely a typo. The worded explanation was correct, but I pulled the wrong number. The original post has be edited to reflect the revision.

yes, that is the right answer, but in the explanation all they said was that capex = cfi

single line, I will try to get the paper with the question and scan it

Was this from a prep provider or the CFAI? Without some sort of qualifying statement you would be making a somewhat broad assumption. I would be surprised if the CFAI did something like this.