![]() The starting point of the FCFF is NOPAT, which we’ll calculate by tax-affecting EBIT. (Increase) / Decrease in NWC = ($2 million).Capital Expenditure (Capex) = ($5 million).Depreciation and Amortization (D&A) = $4 million.In the next step, we’ll calculate our company’s free cash flow to firm (FCFF) using the following set of assumptions. ![]() Free Cash Flow to Firm Calculation (FCFF)
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