# FCFF FCFE

not sure what to do with FCInv if PPE was sold

reduce (new - old PPE) by (the whole?) sale proceed? with or without tax? I feel like not wanting to add depreciation here

FCFF= Ni + NCC + Int (1-T) - FCInv - WCInv

also, what is CapEX ?

Curriculum says note payable is (short term) net borrowing (so not included in EV)

I would say FCInv being sold counts as a nice inflow to Free Cash Flow in current period until it (presumably) gets replaced later down the line.

So I would still take FCInv = (NetPPE(1) - NetPPE(0)) or equivalently (GrossPPE(1) - GrossPPE(0)). Always taking FCInv = net-net or gross-gross and accounting for Depreciation in the NCC portion makes things quite a bit less complicated.

CapEx = FCInv as far as I am aware. OpEx (WCInv) would be added to CapEx to arrive at TotEx.

then reduce the whole sale? tax on gain will be adjusted somewhere else?

ah sorry I tend to skim read. On balanceā¦

When calculating FCInv for an FCFF derivation from NI, assuming no gains/losses on sales of fixed assets I always use net/net or gross/gross. This helps me not double count the depreciation.

If there is a transaction with gain/loss, I have a catch-all formula for all Non Cash Charges, if this is missing something please correct me!

NCC = Deprec, Amort, Deferred Taxes, Unrealised Gains/Losses, FV adjustments