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FCFF = Cash Flow from Operations + Interest Expense x ( 1 - Tax Rate ) - Capex

FCFF = earnings before interest and taxes x (1 - tax rate) + depreciation - long-term investments - investments in working capital they note FCFF (FORMULA 1) = net income + non-cash charges + interest x (1 - tax rate) - long-term investments - investments in working capital

Explain why formula one gives you the same answer as starting with EBIAT

Financial Management, Finance

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