- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
Hello,
It may be a silly question so I apologise in advance.
In appendix 1 and 3, when calculating the cash flows the examiner subtracted the depreciation.
However I understand that the free cash flow to firm is usually calculated adding back the depreciation.
Why is it different in this case? It appears to me that what the examiner calculated is simply the net profit and not the free cash flow.Thanks.
AndreaI have just noticed that the answer does say that the depreciation is not added back because it is assumed to be the same as the capital needed for reinvestment.
I do apologise.
Viewing 3 posts - 1 through 3 (of 3 total)
- The topic ‘Chrysos Co March/June 2017’ is closed to new replies.