Using the Following Information,calculate the Cash Flow from Investing Activities

question 19

Multiple Choice

Using the following information,calculate the cash flow from investing activities:
Disposal of fixed assets for £9,000,with a gain of £1,000; purchase of machine for £11,000; pay-off mortgage £3,000; dividends paid £20,000

• A) £4,000 net cash outflow from investing activities
• B) 24,000 net cash outflow from investing activities
• C) 5,000 net cash inflow from investing activities
• D) 5,000 net cash outflow from investing activities

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Definitions:

Average Rate

Typically refers to the mean rate or typical value for a given measure over a set time period or dataset.

Returns

The gain or loss on an investment over a specified period, typically expressed as a percentage of the investment's initial cost.

Years

Units of time representing a period of approximately 365 days or 12 months, commonly used to measure durations and intervals in financial contexts.

Real Rate of Return

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.