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Unformatted text preview: AP=Accounts payable Accr. = Accruals Depr. = Depreciation OCF=Operating Cash Flows NFAI=Net Fixed Asset Investment NCAI=Net Current Assets Investment FCF = Free Cash Flow EBIT= Earnings Before Interest Tax otherwise known as operating profits NOPAT= Net Operating Profits After Tax then NOPAT = EBIT*(1 T) OCF = EBIT*(1 T) + Depr.= NOPAT + Depr. NFAI = NFA END NFA BEG + Depr. = GFA END- GFA BEG NCAI = (CA END CA BEG ) ((AP END + Accr. END ) - (AP BEG +Accr. BEG )) Please note that the same formula can be re-arranged in many ways, they will all give you the same result....
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- Spring '08