Good late evening!!!
in ur notes, where u layout the FCF calculation, there is a line which says:
Less: Amounts needed to replace non-current assets (X)
in the bpp formula, there is no such line.
what am i understanding wrong?
i did ur example 2 and i get 516 (using the bpp formula) instead of 288
regards
Ask the Tutor ACCA AFM
Free Cash flows - chap 16
9y ago#1There is no formula for this!
Free cash flow is the cash available for investors and is after all cash payments, including cash paid to replace non-current assets if applicable.
Sign in to reply to this topic.