Question: please write a correct solutions. 5. What is the total asset employed as on date? Illustration: The cash flows of a division of a company

please write a correct solutions. 5. What is the

please write a correct solutions.

5. What is the total asset employed as on date? Illustration: The cash flows of a division of a company are given below: Crores) Year 1 Year 2 Year 3 Year 4 Year 5 65 Net operating profit after tax (1) Depreciation expenses (2) 70.20 75.40 80.6 87.10 20 22 24 26 28 Capital expenditure (3) 30 32 35 37 40 Working capital (4) 20 22 23 25 27 Free cash flow (5) = (1) + (2) - (3) - (4) 35 38.20 41.40 44.60 48.10 Cash flows are expected to grow at 5% after 5th year. Cost of capital is 15% and assets employed 325 crores. Evaluate the performance of Division A

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