When doing a free cash flow problem the answer had depreciation added back to the change in fixed capital. Depreciation was also added back as a non-cash charge. Isn’t that counting depreciation twice? Under what circumstances will depreciation have to be added back to change in cap-ex?
I haven’t seen this question yet, but I assume it deals with being presented capex reported on a net basis (i.e. depreciation already subtracted out).
The idea is to track cash flow, what you pay for the asset is relevant, not what you pay minus depreciation.
that helps, thanks