questions on 2 ways to calculate ocf
Hello everybody! I have a small question on OCF calculations.
I found that there exists 2 different ways to calculate OCF. It seems that the second one is generally accepted, but the first way is also found in some textbooks and websites. The answers calculated by two equations don't equal. Could any one tell the difference and how to use in certain cases?
OCF = EBIT + Depreciation - Taxes,
OCF = EBIT * (1-t) + Depreciation - WCInv = NI + Interest*(1-t) + Depreciation - WCInv
Thanks a lot in advance!
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