[amp_mcq option1=”Rs 7,000.00″ option2=”Rs 27,000.00″ option3=”-Rs 27,000.00″ option4=”-Rs 7,000.00″ correct=”option1″]<\/p>\n
The correct answer is A. Rs 7,000.00.<\/p>\n
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.<\/p>\n
To calculate net operating profit after taxes (NOPAT), we can use the following formula:<\/p>\n
NOPAT = FCF – NIOC<\/p>\n
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:<\/p>\n
NOPAT = 17,000 – 10,000 = 7,000<\/p>\n
Therefore, the net operating profit after taxes is Rs 7,000.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rs 7,000.00″ option2=”Rs 27,000.00″ option3=”-Rs 27,000.00″ option4=”-Rs 7,000.00″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-48419","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n