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Examveda

Free cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be

A. Rs 7,000.00

B. Rs 27,000.00

C. -Rs 27,000.00

D. -Rs 7,000.00

Answer: Option B

Solution(By Examveda Team)

Net operating profit after tax = Free cash flow + Net investment in operating capital
= 17000 + 10000 = Rs. 27000.

This Question Belongs to Commerce >> Financial Management

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