i. Computron has a negative free cash flow in 2020 . The financial manager explains to the board that there is nothing wrong with value-adding growth, even if it causes negative free cash flows in the short-term. Using return on invested capital (ROIC) performance evaluation approach, determine whether Cochran's recommendation is adding value. Total operating capital of the company is $1,354,579 and WACC is 10%. Here, ROIC = NOPAT/Total Net Operating Capital New Operating Caiptal (2020)= Total Current Assets-Total Current Liabilities =674,400288,960=385,710 ROIC = NOPAT/Total Net Operating Capital As we see that 2020 's ROIC=75,276/385,710 =0.1951 ROIC(2020)=19.51% ROIC (2019)= NOPAT/Total Net Operating Capital