The correct answer is A. -Rs 4,000.00.
Free cash flow is the cash that a company generates from its operations after accounting for capital expenditures. It is calculated by taking net operating profit after taxes (NOPAT) and adding back depreciation and amortization, and then subtracting net investment in operating capital.
In this case, NOPAT is Rs 4,500, depreciation and amortization is Rs 3,000, and net investment in operating capital is Rs 8,500. Therefore, free cash flow is:
Free cash flow = NOPAT + Depreciation and amortization – Net investment in operating capital
= Rs 4,500 + Rs 3,000 – Rs 8,500
= -Rs 4,000.00
Option B is incorrect because it does not take into account net investment in operating capital. Option C is incorrect because it is the negative of the correct answer. Option D is incorrect because it is the sum of NOPAT and net investment in operating capital, which is not equal to free cash flow.