QUESTION 14 Free cash flow (FCF) and net income differ in the several ways including which of the following? Net income may include an interest expense; free cash flow is calculated assuming no debt. The net income calculation deducts various noncash expenses including depreciation; the FCF calculation only considers cash flows. Capital expenditures do not appear immediately and in total in the net income calculation; however, they do in the free cash flow calculation. Net income recognizes revenue at the time of sale; FCF recognizes the cash flow when payment is received