Q518
Net investment in operating capital is Rs 7000 and net operating profit after taxes is Rs 11,000 then free cash flow will be
A.
-Rs 18,000.00
B.
Rs 18,000.00
C.
-Rs 4,000.00
D.
Rs 4,000.00
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Free cash flow = Net operating profit after taxes - Net investment in operating capital = 11000 - 7000 = Rs. 4000.