Class when calculation fcf why is depreciation always added, Accounting Basics

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Class when calculation fcf why is depreciation always added

1. Class, when calculation FCF, why is depreciation always added back? Similarly, why must we subtract capital expenditures?

2. Why do we use discounted cash flow analysis to value a venture? What is/are the impact and implications of using DCF for valuation of a venture?

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Accounting Basics: Class when calculation fcf why is depreciation always added

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Accounting Basics: Class when calculation fcf why is depreciation always added

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