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Examveda

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.

This Question Belongs to Commerce >> Financial Management

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