1. Evaluating free cash flows and return on invested capital You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: BlastTel Inc. and SaneTel Corp. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis: Data Collected EBIT Depreciation Total operating capital Net investment in operating capital WACC BlastTel Inc. $213,200 $70,356 $936,000 $468,000 11.85% SaneTel Corp. $78,000 $25,740 $486,720 $202,800 11.88% In your analysis, you want to look for several characteristics-one of them being the return on invested capital (ROIC). Using the information available, complete the following statements: BlastTel Inc. has a free cash flow than SaneTel Corp. does . The net operating profit after tax (NOPAT) for BlastTel Inc. is , whereas the NOPAT for SaneTel Corp. is BlastTel Inc. has a return on invested capital of return on invested capital of whereas, SaneTel Corp. has a Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? O If a company has negative NOPAT but a positive free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth. O If a company has positive NOPAT but a negative free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth