I got curious if CAPEX includes acquiring other businesses. Thank you so much for reading it and have a good day!

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Yes. Business acquisitions will be reflected on the CF statement under "CFs from investing activities" if cash is used. This NYU Lecture gives a good example of how to adjust CAPEX for business acquisitions. If you know the firm does not engage in a lot of acquisitions, you can average out the expenditure over several years. For example, if your firm spends $100M on acquisitions per 5 years, you can put $20M in the acquisition line item for any given year.

Thus your adjusted CAPEX = Total CAPEX (from CF statement) + $100M(acquisition cost) - amortization of acquisition costs.

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