evaibating Free Cash Flows You are an industry analyst for the telecom sector. You are analyzing financial reports from two Inc. and PhoneZ 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: companies: TT&T Data Collected EBIT Depreciation Total operating capital Net investment in operating capital WACC TT&T Inc. $142,500 $57,000 $837,900 $399,000 8.84% PhoneZ Corp. $101,460 $40,584 $653,790 $210,900 11 .50% 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: The net operating profit after tax (NOPAT) for TT&T Inc. is , whereas the NOPAT for Phonez Corp. is TT&T Inc. has a free cash flow of . TT&T Inc. has , whereas, PhoneZ Corp. has a free cash flow of a return on invested capital than PhoneZ Corp. has. 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? Ir RotC Is less than the rate of return that investors require, which is the weighted average cost of capita (WACC), then the firm is adding value. O C is greater than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value