Free cash flow (FCF) and net income (NI) differ in the following ways: A)Net income accrues to shareholders, calculated after interest expense; free cash flow is calculated assuming all flows go to equity holders. B)Net income accrues to shareholders, calculated after interest expense; free cash flow is calculated assuming all flows go to equity holders and net income is calculated after various noncash expenses, including depreciation; FCF adds back depreciation. C)Net income accrues to shareholders, calculated after interest expense; free cash flow is calculated assuming all flows go to equity holders; net income is calculated after various noncash expenses, including depreciation; FCF adds back depreciation; and capital expenditures and investments in working capital do not appear in net income calculations; they do reduce free cash flows. D)Net income accrues to shareholders, calculated after interest expense; free cash flow is calculated assuming all flows go to equity holders; net income is calculated after various noncash expenses, including depreciation; FCF adds back depreciation; capital expenditures and investments in working capital do not appear in net income calculations; they do reduce free cash flows; and net income is never negative; free cash flows can be negative for rapidly growing firms, even if the firm is profitable, because investments can exceed cash flows from operations.