An operating cash flows is Rs 12000 and gross fixed asset expenditure is Rs 5000 then free cash flow will be
A. -Rs 7,000.00
B. Rs 7,000.00
C. Rs 17,000.00
D. -Rs 17,000.00
Answer: Option B
Solution (By Examveda Team)
Free cash flow = Operating cash flow - Fixed expenditure= 12000 - 5000 = Rs. 7000.
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