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Free Cash Flows (FCFs) are important in finance.How is net income different than free cash flows?Select all of the true statements (there may be more
Free Cash Flows (FCFs) are important in finance.How is net income different than free cash flows?Select all of the true statements (there may be more than 1).
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A. Net income does not directly reflect capital expenditures for the year whereas FCF does.
B. Net income is calculated after subtracting depreciation. We add back depreciation when calculating FCF.
C. FCF in a given year will be larger than net income for that year.
D. Net income does not reflect investments in working capital for the year whereas FCF does.
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