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.
E) Net cash flow is the same as free cash flow (FCF) .
Correct Answer:
Verified
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