Question
Which of the following statements is CORRECT? A. Net cash flow (NCF) is defined as follows: NCF = Net income - Depreciation and Amortization. B.
Which of the following statements is CORRECT?
A. Net cash flow (NCF) is defined as follows: NCF = Net income - Depreciation and Amortization. |
B. Changes in working capital have no effect on free cash flow. |
C. Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T) + Depreciation and Amortization - Capital expenditures required to sustain operations - Required changes in net operating working capital. |
D. Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T)+ Depreciation and Amortization + Capital expenditures. |
Net cash flow is the same as free cash flow (FCF). |
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