Question

I am trying to compute net capital expenditure for MMM for 2007. In Damodaran's book, this value is $889 million. I an unable to arrive at this figure. Capex is 1422 and depreciation is 1072, so my calculation gives 1422-1072 = $350 million instead of $889 million. Please help. Thank you

Answer 1

I was doing this problem earlier, I believe he is adding in the cash spent on acquisitions (539). Adding this value to the capital expenditures will give you the right answer.