Rs 24,000.00
Rs 6,000.00
-Rs 6,000.00
-Rs 24,000.00
Answer is Right!
Answer is Wrong!
The correct answer is B. Rs 6,000.00.
Free cash flow is calculated as net operating profit after taxes (NOPAT) plus depreciation and amortization, minus capital expenditures. Net investment in operating capital is the change in operating capital.
In this case, we are given that free cash flow is Rs 15,000 and net investment in operating capital is Rs 9,000. We can calculate NOPAT as follows:
NOPAT = free cash flow – net investment in operating capital
= Rs 15,000 – Rs 9,000
= Rs 6,000
Therefore, the correct answer is B. Rs 6,000.00.
Here is a brief explanation of each option:
- Option A: Rs 24,000.00. This is incorrect because it is the sum of free cash flow and net investment in operating capital.
- Option B: Rs 6,000.00. This is the correct answer because it is calculated as NOPAT, which is free cash flow minus net investment in operating capital.
- Option C: -Rs 6,000.00. This is incorrect because it is the negative of NOPAT.
- Option D: -Rs 24,000.00. This is incorrect because it is the negative of the sum of free cash flow and net investment in operating capital.