Q511
Net investment in operating capital is Rs 5000 and net operating profit after taxes is Rs 8000 then free cash flow would be
A.
Rs 13,000.00
B.
-Rs 3,000.00
C.
Rs 3,000.00
AnswerD.
-Rs 13,000.00
Answer: Option C
Solution
Answer: Option C
Solution:
Free cash flow = Operating profit after tax - Net investment in operating capital = 8000 - 5000 = Rs. 3000.