Examveda
Examveda

Net investment in operating capital is subtracted from net operating profit after taxes to calculate

A. relevant inflows

B. free cash flow

C. relevant outflows

D. cash outlay

Answer: Option B

Solution(By Examveda Team)

Net investment in operating capital is subtracted from net operating profit after taxes to calculate free cash flow. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.

This Question Belongs to Commerce >> Financial Management

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