economicz

If a cash flow statement is provided, just look under the CFI section.

NO EXCUSES

jacksparrow

I KNOW to look under the CFI section (see the above 20 posts), the point is that the CFI section gave both "investment in fixed asset", and "proceeds from sale of fixed asset", and used only the investment portion in the FCF calculation (as opposed to the readings which say to use the net).

19831985

markCFAIL Wrote:
-------------------------------------------------------
> I KNOW to look under the CFI section (see the
> above 20 posts), the point is that the CFI section
> gave both "investment in fixed asset", and
> "proceeds from sale of fixed asset", and used only
> the investment portion in the FCF calculation (as
> opposed to the readings which say to use the net).

Ok, but why would you take into account proceeds from the sale of fixed assets? That is distractor information. The formula instructs us to use FC Inv, not Net FC Inv. This is no excuses material.

NO EXCUSES

ryanlb

because the text makes multiple references to "FCINV" being "net" investment..... hence the point of the thread?

kickthatcfa

markCFAIL:

I struggled with the same question. So what's the consensus? Net FCINV or not?

OmarAdnan

CFAI book says net

maryli

Wow, just checked the Stalla material and guess what? It is net FC. Honestly, I'm starting to get tired of these @#$%& formula notations that leave out the detail.

NO EXCUSES