should notes payable be considered in NWInv calculation of FCFF

CFA Level II Equities
#1

I don’t know if you noticed that CFAI book Equity book P240 Free cash flow valuation EOC question2. The calculation of Net Working capital does not include notes payable. NWInv = change of Net working capital = Change of (non cash current asset - current liability) that’s my understanding, which should include current portion of notes payable.

#2

WC excludes short-term debt, i.e. notes payables and the current portion of long-term debt. Also, on the asset side, WC excludes cash.