FCFF calculation - issue with NCC and gains on asset sales

An analyst collects the information below regarding a company for use in a discounted free cash flow model:

Net income for common shareholders 90
Interest expense 23
Increase in accounts payable 3
Increase in accounts receivable 7
Decrease in inventory 10
Preference dividend paid 5
Gain recognised after sale of asset 8
Marginal tax rate 25%
Depreciation expense 10
Fixed capital investment 12

FCFF is closest to : 108.25

I am struggling to understand why the gain is to be removed. This is related to NCC addition and removal from NI but I don’t get it.

It is even more confusing as sometimes the gains on sales from assets are deducted from the cost of capex.

Can someone explain this?

Gains (or losses) aren’t cash flow.

You need to compute the cash flow (i.e., the selling price). Presumably, it’s subsumed in the “Fixed capital investment”, although that’s somewhat ambiguous.

Not a well presented data set.