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.

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