FCinv - quick question


On book 3, p 140, they have an example to calculate FCinv with long-term asset sales.

Why is it that we dont consider depreciation in the calculation? I don’t get this example.

I know they mention “long-term assets sold were fully depreciated”, but how about the $1400 capital expenditures the company realized?


CFA books or which one ?


As capital expenditure is directly given amounting to $1400.

You need to consider depreciation while calculating capital expenditure by taking difference of opening & closing PPE