for below two formula, I assume I could get the same result. so, for 1st one, where is the amortization? I assume from 2nd could derive the first one by using: EBITDA=EBIT+D+A. thanks. 1.Calculating FCFF from EBIT FCFF=〔EBIT x (1-tax rate)〕+ Dep – FCInv – WCInv 2.Calculating FCFF from EBITDA FCFF=〔EBITDA x (1-tax rate)〕+(Dep x tax rate) – FCInv – WCInv

if the questions mentions amortization then the first formula will be FCFF = EBIT (1-t) + Dep + Amort - FCInv - WCInv (They are just implying that if you’re using EBIT , then all Non cash charges are to be added back fully)