Q524
Net investment in operating capital is subtracted from net operating profit after taxes to calculate
A.
relevant inflows
B.
free cash flow
AnswerC.
relevant outflows
D.
cash outlay
Answer: Option B
Solution
Answer: Option B
Solution:
Net investment in operating capital is subtracted from net operating profit after taxes to calculate free cash flow. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.