Free Cash Flow to the Firm FCFF

Why only Fixed Capital investment is deducted from CFO to arrive at FCFF? Why CFI is not deducted? CFI also includes cash flows and will have an impact on how much Free cash is available to the firm?

It’s answered in this thread.

This is because CAPEX (purchase of fixed assets) is a core activity that recur every year, and are fairly easy to forecast for valuation purposes. There are other line items in CFI that are non-core such as cash from investment income, sales of short-term investment securities, cash payments related to mergers and acquisitions, that are infrequent or one-offs (which are hard to predict). I hope that addresses your question.

Thanks that makes it clear.

well explained. Thanks