Sales revenue Rs 90,000, operating taxes Rs 30,000 and operating capital Rs 15,000 then value of free cash flows will be

Rs 45,000.00
Rs 13,500.00
Rs 65,000.00
Rs 75,000.00

The correct answer is A. Rs 45,000.00.

Free cash flow is the cash flow available for a company to use for investment or distribution to shareholders after taking into account capital expenditures and operating expenses. It is calculated as follows:

Free cash flow = operating profit + depreciation and amortization – capital expenditures

In this case, the operating profit is Rs 90,000, the depreciation and amortization is Rs 30,000, and the capital expenditures is Rs 15,000. Therefore, the free cash flow is:

Free cash flow = 90,000 + 30,000 – 15,000 = 45,000

Option B is incorrect because it does not take into account depreciation and amortization. Option C is incorrect because it does not take into account capital expenditures. Option D is incorrect because it is the operating profit, not the free cash flow.

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