Difference between nopat and net income


Question 1: In your own words, please explain the difference between NOPAT and net income? Which is a better measure of the performance of a firm's operations?

Question 2: In your words, What is free cash flow (FCF)?

I personally know that based on my textbook it is the monetary amount that a firm is able to generate after expenses and other obligations to expand its asset base. Can you elaborate on what I have learned?

I understand without cash in the firm, it is tough to operate and develop new plans, products and expansion. Please elaborate and answer...

Why is free cash flow (FCF) the most important measure of cash flow?

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Accounting Basics: Difference between nopat and net income
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