A company paid ₹2,50,000 to acquire shares in another company and received a dividend of ₹50,000 after the acquisition. What will be the net cash outflow and in which type of activity it is used?

₹2,00,000 in investing activity

The correct answer is option 4- ₹2,00,000 in investing activity.

Acquiring shares in other company is a investing activity and dividend received on it is also a investing activity. 2,50,000 is outflow of cash and 50,000 is inflow of cash.
Net cash Outflow = 2,50,000 - 50,000
                            = ₹2,00,000