mp3bu

the point they are making is that in the CFFI section there will be a couple lines there like:

Capital Expenditures -$200,000 ( ie. the new ppe bought)
Assets Sold +$100,000
Total Cash Flow From Investing -$100,000

so when you do your FCFF calc, your CFFI section will be understated by 100k, because it has the disposed asset in it. you have to back it out to get the true FCFF calc.