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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Chrysos Co
Hello Sir,For PYQ March/June 2017 Q1
for appendix three
why the cash flows (3688)do not deduct the additional $1200m ?investment in machinery)
to derive FCFF?
Thank you.
Because they are looking at future cash flows and the 1,200 will have been invested immediately – not in the future.
