Which of the following formulas correctly estimates free cash flows to the firm?

A) FCFF = EBIT × (1 + tax rate) + non cash expenses - capital expenditures - net increases in working capital
B) FCFF = EBIT × (1 - tax rate) + non cash expenses - capital expenditures - net increases in working capital
C) FCFF = EBIT × (1 - tax rate) + non cash expenses + capital expenditures - net increases in working capital
D) FCFF = EBIT × (1 - tax rate) - non cash expenses + capital expenditures - net increases in working capital

B