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Examveda

Net investment in operating capital is Rs 5000 and net operating profit after taxes is Rs 8000 then free cash flow would be

A. Rs 13,000.00

B. -Rs 3,000.00

C. Rs 3,000.00

D. -Rs 13,000.00

Answer: Option C

Solution(By Examveda Team)

Free cash flow = Operating profit after tax - Net investment in operating capital
= 8000 - 5000 = Rs. 3000.

This Question Belongs to Commerce >> Financial Management

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