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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