FCI in FCFF calculations

CFA Level II
#1

Is the FCI in FCFF calculations the nett capital investment( Capital expenditure less asset sales) or just the capital expenditure?

I took the 2009 mock today where they’ve just taken the capital expenditure and not the sale of assets? Something amiss here? Please help!!

#2

Help?

#3

You’re right, it is a net figure.

Can u post the question?

Maybe the cap ex figure they give u is net?

#4

For this exam (2009 mock) you could only get the correct answer by using the CFO method for FCFF. The other way gives you the wrong answer.