[amp_mcq option1=”Rs 45,000.00″ option2=”Rs 13,500.00″ option3=”Rs 65,000.00″ option4=”Rs 75,000.00″ correct=”option1″]<\/p>\n
The correct answer is A. Rs 45,000.00.<\/p>\n
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:<\/p>\n
Free cash flow = operating profit + depreciation and amortization – capital expenditures<\/p>\n
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:<\/p>\n
Free cash flow = 90,000 + 30,000 – 15,000 = 45,000<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rs 45,000.00″ option2=”Rs 13,500.00″ option3=”Rs 65,000.00″ option4=”Rs 75,000.00″ 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-54765","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n