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Commerce · Q530

Financial Management

Graduate and Post Graduate · Commerce · question 530

Q530

Free cash flow is Rs 15000, operating cash flow is Rs 3000, investment outlay cash flow is Rs 5000 then salvage cash flow will be

A.
Rs 17,000.00
B.
-Rs 17,000.00
C.
Rs 7,000.00
Answer
D.
-Rs 7,000.00

Answer: Option C

Solution

Answer: Option C
Solution:
salvage cash flow = Free cash flow - Investment outlay cashflow - Operating cash flow =
15000 - 5000 - 3000 = Rs. 7000.