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Examveda

Net investment in operating capital is Rs 7000 and net operating profit after taxes is Rs 11,000 then free cash flow will be

A. -Rs 18,000.00

B. Rs 18,000.00

C. -Rs 4,000.00

D. Rs 4,000.00

Answer: Option D

Solution(By Examveda Team)

Free cash flow = Net operating profit after taxes - Net investment in operating capital
= 11000 - 7000 = Rs. 4000.

This Question Belongs to Commerce >> Financial Management

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