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Management · Q516

Financial Management

Graduate and Post Graduate · Management · question 516

Q516

An investment outlay cash flow is Rs 4000, operating cash flow is Rs 1000 and salvage cash flow is Rs 5000 then free cash flow would be

A.
Rs 10,000.00
Answer
B.
Rs 8,000.00
C.
Rs 0.00
D.
none of above

Answer: Option A

Solution

Answer: Option A
Solution:
Free cash flow = Investment outlay cashflow + Operating cash flow + salvage cash flow =
4000 + 1000 + 5000 = Rs. 10000.