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Why is 'Interest Expense' added back (after-tax) to Net Income when calculating Free Cash Flow to the Firm (FCFF)?

1. Because the Cash Flow from Operations (CFO) already includes interest as an investing activity.
2. Because interest expense is a non-cash charge under modern accounting standards.
3. To remove the effect of the company's financing choices and arrive at a capital-structure neutral cash flow.
4. To account for the fact that interest is not tax-deductible in a valuation context.

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