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Subject 3. Cash Flow Statement Analysis olders, and Interest expense net of the related tax savings was deducted in arriving at net income.
The add-back is after-tax, because the discount rate in the FCFF model (WACC) is also calculated on an after-tax basis. <span>FCInv: Investment in fixed capital. It equals capital expenditures for PP&E minus sales of fixed assets. WCInv: Investment in working capital. It equals the increase in short-term operating assets net of operating lia
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