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Management · Q520

Financial Management

Graduate and Post Graduate · Management · question 520

Q520

An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be

A.
Rs 500.00
B.
Rs 2,500.00
C.
Rs 650.00
D.
Rs 6,500.00
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Free cash flow = Investment outlay cashflow + operating cash flow + salvage cash flow
= 2000 + 1500 + 3000
= Rs. 6500.