Which of the Following Statements Is CORRECT

Multiple Choice

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) .