** Equity Valuation - FC Inv't using gross assets value**

FC Inv't is the change in gross assets where gross assets is the NBV + Deprec.

Let's do a simple example: Opening NBV 100, deprec for the year is 10, there are no asset disposals and closing NBV of assets is 110. Here we can see that FC Inv't must be 20 ie 100 - 10 + FC Inv't = 110

Alternatively we can calculate the gross assets if we assume opening cumulative depreciation is 75 and closing is 85 (hence the deprec expense for the year is 10.

Opening gross asset = 100+75 = 175 and closing = 110 + 85 = 195 The change in gross assets is 20.

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