Rolta Engineering acquired a machine for Rs. 50 million 6 years back and depreciated Rs. 30 million during the last 6 years. Its current book value is Rs. 20 million. It sold the machine for Rs. 16 million. In preparing cash flow statement, Rolta will recognize:

1.Rs. 4 million as cash outflow from operating activities.

2.Rs. 20 million as cash outflow from financing activities.

3.Rs. 16 million as cash inflow from investing activities.