Which difference between free cash flow and net income

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Problem 1: Which of these is a difference between free cash flow (FCF) and net income (NI)?

Option 1: Net income is calculated after various noncash expenses, including depreciation; FCF adds back depreciation

Option 2: Net income is never negative; free cash flows can be negative

Option 3: Net income and free cash flow both disregard tax impact

Option 4: Free cash flow excludes capital investment; net income includes it

Reference no: EM132635975

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