For fcff why is interest net of tax but non cash charges ncc is not net of tax? Referring to pg 359 of the textbook (last year’s edition)

NCC are non cash charges.

Interest is a cash charge.

Thus we cannot add back the whole interest, we can only add back the tax-shield. Given FCFF is the CF available to all providers of capital (debt + equity).

Because Depriciation is not a actual Cash outflow & on Interest Expense you are getting TAx Benefit