The correct answer is A. Rs 7,000.00.
Free cash flow (FCF) is the cash that a company generates from its operations after taking into account capital expenditures. Net investment in operating capital (NIOC) is the amount of money that a company needs to invest in its operations in order to maintain its current level of production.
To calculate net operating profit after taxes (NOPAT), we can use the following formula:
NOPAT = FCF – NIOC
In this case, we are given that FCF is Rs 17,000 and NIOC is Rs 10,000. Substituting these values into the formula, we get:
NOPAT = 17,000 – 10,000 = 7,000
Therefore, the net operating profit after taxes is Rs 7,000.
Option B is incorrect because it is the value of FCF, not NOPAT. Option C is incorrect because it is the negative of the value of FCF. Option D is incorrect because it is the negative of the value of NIOC.