I’m doing the 2009 afternoon mock. One of the questions (#19 - if anyone else has this one) was asking to calculate FCFF given a bunch of accounting data.
On the cash flow statement it provided the following:
Additions to PP&E = -1317 Disosition from PP&E = 65 CFI = -1252
So I was using the Net income method to calculate FCFF and I used 1252 as my FCI figure. However the answer used 1317. Why are we not including disposal of PP&E? I thought you are supposed to subtract any gains or add back any losses on sale of fixed assets for FCI?