WHY DID WE NOT CONSIDER DEDUCTION OF WORKING CAPITAL EXPENDITURE WHILE COMPUTING FCFF?
Q NO. 36 FRA MOCK 2
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When calculating from Net income we need to remove working capital…
In case when we calculate keeping CFO base we don’t remove working capital as it is already removed (eg inventory)
I got it, thanx for the quick reply.
Then give me best ans ;-p