The net profits made during the year are Rs. 50,000. Machine purchased during the year was for Rs 40,000 and non current investment sold were for Rs 1,00,000. Then during the year the cash flow from Investing activities will be equal to:

Rs. 60,000

The correct answer is Option (1) → Rs. 60,000.

Net profits = 50,000.
Machine purchased = 40,000 (Cash outflow)
Non current investment sold =1,00,000 (Cash inflow)

Cash flow from Investing activities = Sale of non current investment - Purchase of machinery 
                                                  = 1,00,000  - 40,000
                                                  = 60,000