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Management · Q508

Financial Management

Graduate and Post Graduate · Management · question 508

Q508

Free cash flow is Rs 12000, an operating cash flow is Rs 4000, an investment outlay cash flow is Rs 5000 then salvage cash flow would be

A.
-Rs 21,000.00
B.
Rs 21,000.00
C.
-Rs 3,000.00
D.
Rs 3,000.00
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Salvage Cash flow = Free cash flow - Operating cash flow - Investment outlay cash flow
= 12000 - 4000 - 5000 = Rs. 3000.