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Net investment in operating capital is Rs 7000 and net operating...

This question belongs to Commerce Financial Management
Financial Management
?

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

Answer & Solution
Correct Answer: Option D
Free cash flow = Net operating profit after taxes - Net investment in operating capital
= 11000 - 7000 = Rs. 4000.
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