Capital Budgeting decisions must be based on "relevant incremental free cash flows", not "accounting income". Which of the following is not a reason for this? 10. calculating "accounting income", interest expenses are not subtracted out; they are when estimating "relevant incremental cash flows". B. In calculating Net Income, accounting usually subtracts non-cash charges (eg: depreciation & C. D. Cost of fixed assets is a cash outflow, but accounting does not show the purchase of the fixed assets as a amortization expense) from revenues. These are added back in when estimating free cash flows. Changes in Net Operating Working Capital (CA - CL) are not considered when calculating "accounting income", but they are when estimating "relevant incremental free cash flo cost deduction from accounting income. Depreciation Expense "covers the cost" of F